Africa’s largest refinery went public on the Nigerian capital market with an offering of 4.100 million shares and the aim of raising funds to expand its capacity to 1.4 million barrels per day.
The Dangote refinery it launched its initial public offering in Nigeria at a price of 525 naira per share, if the placement is completed, the operation could raise about $1.600 million and increase to about $2.100 million through an over-allotment option.
The transaction implies a valuation close to 47.000 million dollars for the facility located on the outskirts of Lagos. With a current processing capacity of around 700,000 barrels per day, the plant has become a key component of Nigeria’s fuel market and one of Aliko Dangote’s main industrial assets.
Dangote OPI will be open until October
The offer will remain open until October 13, small investors can participate with a minimum of 10 shares through digital financial platforms enabled for the operation.
This scheme allows Nigerian citizens to directly access the refinery’s capital, the offer is also available to institutional investors who meet the established requirements.
At a price of 525 naira per share, the initial value of the offered shares is around 2.15 billion naira, due to its size, the operation places the Dangote refinery in the heart of the African capital market and strengthens the relationship between the energy sector and the Nigerian stock exchange.
The refinery processes about 700,000 barrels per day
Currently, the Dangote refinery processes around 700,000 barrels of crude oil per day, since the start of its operations in 2024, the facility has increased the production of gasoline, diesel, and aviation fuel.
A growing portion of these products is also destined for international markets, the refinery has shipped fuels to other African countries and expanded its presence in Europe through exports of jet fuel.
The improved activity is also reflected in its financial results, according to the data presented for the operation, the company recorded a net profit of $1.820 million during the first half of 2026, compared to losses of $476 million in all of 2025.
Dangote is preparing a US$14.300 million expansion
A significant portion of the proceeds from the IPO will be allocated to the refinery’s expansion program. The project entails an approximate investment of $14.300 million to increase processing capacity to 1.4 million barrels per day.
The company expects to reach that level by 2029, if the plan is completed as expected, the facility will double its current capacity and significantly increase the volume available for both the Nigerian market and for export.
The expansion is also among the factors that potential shareholders evaluate, some retail investors find the scale of the plant attractive, although they also point to the risk of delays and higher costs during the execution of the works.
ADNOC shows interest in the Dangote refinery
Meanwhile, the UAE’s state-owned oil company ADNOC has shown interest in investing in the refinery, so far, the terms of any potential transaction have not been publicly disclosed.
Dangote is also exploring new refining projects outside Nigeria, including a facility valued at approximately $17 billion on Lamu Island, Kenya. The proposal envisions participation from East African governments through equity investments. Kenya is being considered for a 10% stake, valued at around $500 million.
The demand for shares will be a test for the valuation
Investor response in the coming weeks will gauge acceptance of the valuation assigned to the Dangote refinery. The company is entering the public offering after a private placement in July that received applications equivalent to 3.7 times the initially available volume. This track record raises expectations regarding demand for the new issue.
The initial public offering thus brings together three important elements for the company’s future, the access to new capital, expansion of refining capacity, and greater participation of Nigerian investors in one of the continent’s largest energy assets.
Source: Oil Price
Photo: Shutterstock
