Johannesburg Stock Exchange eyes Dangote refinery secondary listing after planned $5 billion IPO

Johannesburg Stock Exchange (JSE), Africa’s largest stock exchange by market capitalization, is in discussions with Aliko Dangote’s Dangote Group over a potential secondary listing of its flagship petroleum refinery, as the company prepares for a primary public offering in Lagos.

The South African bourse (JSE) indicated that the refinery is expected to debut on the Nigerian Exchange, with a “strong intent” to subsequently pursue a Johannesburg listing. Dangote Group is targeting approximately $5 billion from the initial public offering, with a possible timeline in October, although final details remain subject to regulatory approvals.

People familiar with the matter said the group has made a preliminary filing with Nigeria’s securities regulator and is seeking to broaden participation across African markets. Kenya is expected to contribute about $500 million, though the figure remains indicative and could change.

Dangote refinery’s scale and strategic importance

Constructed at an estimated cost of about $20 billion, the 650,000-barrel-per-day refinery began production in 2024 and has since reached full capacity. It stands as Africa’s largest refinery, with the Nigerian National Petroleum Company holding a stake of just over 7%.

The project is widely seen as a cornerstone of Nigeria’s push to reduce fuel imports and strengthen domestic refining capacity, while positioning Dangote Group as a dominant player in the continent’s energy value chain.

Cross-border listing strategy gains momentum

A secondary listing in Johannesburg would mirror precedents set by Nigerian firms such as Oando Plc, which maintains dual listings in Lagos and Johannesburg. The move could expand the refinery’s access to institutional capital and deepen investor participation beyond Nigeria.

For the JSE, the potential listing represents a significant addition to its pipeline of large, cross-border deals, reinforcing its position as a hub for pan-African capital markets activity.

Execution hinges on market conditions

The Johannesburg Stock Exchange is Africa’s largest stock exchange by market capitalization and ranks among the top 20 globally. Located in Sandton, South Africa, and founded in 1887 during the first South African gold rush, it accounts for roughly 60% of the continent’s total equity market value. For Dangote, the refinery represents a central pillar of his long-term industrial strategy. Having stepped down as chairman of Dangote Cement, he is increasingly focused on oil refining and fertilizer production as part of a broader push to reduce Africa’s dependence on imports.

The success and timing of both the IPO and any secondary listing will depend on prevailing market conditions, investor appetite, and the completion of multi-jurisdictional regulatory approvals.

If completed, the transaction could rank among the largest listings on the continent in recent years, marking a pivotal moment for African capital markets integration.