Dangote Petroleum Refinery is set to price shares in its upcoming initial public offering at N525 per share, targeting a raise of roughly $1.5 billion in what could become Africa’s largest public listing. The company has been strengthening its financial position ahead of the offering, having previously raised $2.5 billion through a private placement and securing a $1 billion underwriting programme from investors.
Offer structure and timeline
According to people with direct knowledge of the deal, Dangote Group plans to sell 4.1 billion shares in the Lagos-based refinery at the N525 price point. The sources did not disclose what percentage stake those shares would represent. The proposed offer includes a 15% greenshoe option, which would allow the company to sell additional shares if investor demand exceeds the initial offering, potentially pushing total proceeds beyond the $1.5 billion target.
The order book is targeted to open on September 14, placing the start of the IPO within the timeline previously outlined by Aliko Dangote during a business meeting in Botswana. Dangote Refinery declined to comment on the proposed terms.
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Capacity expansion plans
The fundraising is expected to support Dangote Group’s ambition to double the refinery’s capacity from its current 650,000 barrels per day to 1.4 million barrels per day. The company has positioned itself as one of the world’s largest refining facilities, and the IPO forms part of its broader strategy to significantly expand production.
The expansion comes as Nigeria’s oil refining sector recorded its strongest quarterly growth in the second quarter of 2026, expanding by 43.94% year-on-year, according to official data. Increased output from the Dangote Refinery lifted domestic refining activity during that period.
Beyond Nigeria, the group is pursuing a major refining project in Kenya. The facility would replicate elements of the Lagos operation and could require an estimated $17 billion investment, with construction projected to take up to five years. Once completed, it would supply refined petroleum products across Kenya and neighboring East African countries, reducing the region’s dependence on imported fuels.
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Growing market influence
The refinery’s impact is increasingly being felt in international markets. Data from the U.S. Energy Information Administration showed that Nigeria’s seaborne refined petroleum exports to Europe surged by about 767% to 130,000 barrels per day in the second quarter of 2026, compared with 15,000 barrels per day in 2023. The increase was driven largely by production from the Dangote facility.
The timing of the IPO will test whether investor appetite matches the company’s ambitions. Market conditions for energy listings have been mixed globally this year, and the final pricing could shift depending on how the order book develops. If completed successfully, the listing would mark a significant milestone for both the refinery and Nigeria’s capital markets.
With the IPO expected within days and the Kenya project moving forward, the final months of 2026 could represent one of the busiest expansion periods yet for Africa’s largest industrial conglomerate.