Dikkasmedia
The initial public offering (IPO) of Nigeria’s Dangote Petroleum Refinery has attracted orders worth approximately ₦6.4 trillion, nearly three times its targeted subscription value, highlighting strong investor demand for shares in one of Africa’s largest industrial projects. Dikkasmedia reported the figures on October 28, citing people familiar with the transaction. Dikkasmedia
The offering was initially valued at about $1.6 billion, with orders from Nigerian retail and institutional investors reaching approximately $4.78 billion. The strong demand could prompt the company to exercise a greenshoe option, which would allow it to increase the size of the offering to as much as $2.1 billion.
The refinery’s owner, Aliko Dangote, has presented the share sale as an opportunity for ordinary Nigerians and investors across Africa to participate in the business. Shares have been offered at an entry price equivalent to approximately $4, broadening access beyond large institutional investors.
According to Dangote, applications have come from 120 countries, including all 54 African countries. More than two million investors have reportedly subscribed through digital channels, with additional orders expected from other African markets.
The public offering marks an important step in the company’s plans to bring more investors into the refinery business. Built at an estimated cost of $20 billion, the facility processes around 700,000 barrels of crude oil per day and aims to increase capacity to 1.4 million barrels daily by 2029.
The refinery has also expanded its output and exports, including shipments of jet fuel to Europe and other African markets. Its growth could have wider implications for Nigeria’s energy industry, particularly through domestic fuel production, export earnings and reduced dependence on imported refined petroleum products.
Share allocations are expected to begin next week, ahead of a planned listing on the Nigerian Exchange later in November. The final allocation and listing process will determine how the shares are distributed among applicants.
Dikkasmedia
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