Dangote Refinery secures $400 million ahead of planned IPO  

Dangote Petroleum Refinery & Petrochemicals FZE, owned by Africa’s richest man Aliko Dangote, has secured a $400 million underwriting commitment from investors as it prepares for a planned initial public offering that could become one of Africa’s largest stock market listings. 

The commitment was disclosed on Tuesday, citing an emailed statement from parties involved in the transaction. Marob Strategies and Consulting DIFC Ltd. and Lilium Capital Group, which are serving as co-financial advisers to the refinery, are providing the backing. 

The commitment is linked to the planned IPO and will take effect when the offering is launched, subject to market conditions, corporate and regulatory approvals, definitive agreements and compliance with securities laws. 

That means the $400 million should not be viewed as a completed cash injection into the refinery. Instead, it represents financial backing for the planned share sale and could help provide investors with greater confidence as the company moves toward the market.

IPO could raise up to $5 billion 

The underwriting commitment follows a $2.5 billion private placement completed by the refinery in July, giving the company additional capital as it prepares for its next stage of expansion. 

Dangote Refinery is targeting an IPO that could raise as much as $5 billion, potentially making it the largest stock market listing in African history. The company has submitted an application to Nigeria’s Securities and Exchange Commission, with regulatory approval and the publication of a prospectus expected as the transaction advances. 

The planned listing comes as the refinery looks to raise money for a major expansion. The company is considering increasing processing capacity from about 700,000 barrels per day to roughly 1.4 million barrels per day. 

If completed, the expansion would place the Lagos-based facility among the world’s largest refineries and give Dangote Refinery an even bigger role in Nigeria’s fuel market and regional exports.

Refinery expands export reach 

The 650,000-barrel-a-day facility began producing refined fuels in 2024 and has since increased output of gasoline, diesel, aviation fuel and naphtha. 

Its rising production has helped reduce Nigeria’s dependence on imported petroleum products, while exports have opened another source of revenue for the company. Dangote Refinery has shipped products to several European markets, including the United Kingdom, France, Spain, Italy and the Netherlands. 

For Aliko Dangote, whose net worth stands at $35.2 billion, according to the Bloomberg Billionaire Index, the refinery is a key part of his industrial investments in Africa. 

His interests extend beyond refining. Dangote is also pursuing investments in fertilizer and other industrial projects, including a proposed $16 billion refinery in Kenya, with debt expected to provide about 70% of the financing. 

The planned listing would give investors a direct stake in one of Africa’s most closely watched industrial projects while providing Dangote Refinery with another source of capital for its next stage of growth.