Alhaji Aliko Dangote, president of the Dangote Group, is aiming for a $50 billion valuation for his Dangote Petroleum Refinery & Petrochemicals prior to a scheduled stock market listing later this year, according to a Bloomberg report.
Dangote wants investors to know that the refinery is now worth $50 billion, having started operations in 2024. According to Bloomberg, the refinery company may sell up to 10% of its shares through the Nigerian stock exchange, suggesting a possible $5 billion offering.
A senior executive at the Dangote Group confirmed that the projected valuation aligns with the company’s current internal expectations but declined to provide additional details on the planned transaction.
The planned listing comes as stronger global crude oil prices and growing domestic fuel demand improve the commercial outlook for the 650,000 barrels-per-day refinery, which has increasingly become a dominant player in Nigeria’s downstream petroleum market.
According to Bloomberg on Monday, Dangote is preparing a historic cross-border public sale of his $20 billion oil refinery, which could alter capital markets throughout Africa and increase regional investor engagement.
Shares of the Dangote Petroleum Refinery and Petrochemicals will be listed on several African stock exchanges as part of the proposed listing, which is being positioned as the first pan-African IPO of this magnitude.
Following a meeting in Lagos between Dangote and the chief executives of multiple African bourses that are part of the African Securities Exchanges Association, specifics of the scheme became public.
Frank Mwiti, the chief executive officer of the Nairobi Securities Exchange, who attended the meeting, revealed that the main topic of discussion was how to set up a cross-border listing framework that would enable investors from all over the continent to take part in the ownership of the refinery.
Following the meeting, Mwiti stated, “The plan is to structure a pan-African IPO,” pointing out that the endeavor would necessitate collaboration among exchanges in order to lower regulatory hurdles and enable smooth trading across jurisdictions.
A representative for the Dangote Group acknowledged that the meeting had occurred, but he would not elaborate on the specifics of the proposed offering’s timetable and structure.
The news occurs months after Dangote announced plans to list roughly 10% of the refinery on the Nigerian Exchange Group in 2026. This move is generally regarded as an attempt to increase the company’s investor base and unlock value.
Dangote has assembled a group of financial advisors, including FirstCap Limited, Vetiva Advisory Services Limited, and Stanbic IBTC Capital Limited, to spearhead the offering.
Ukandu Ukandu, FirstCap’s CEO, confirmed the hiring and said the advisers were already working on the transaction structure.
It was observed that a multi-exchange listing may establish Nigeria as a major destination for cross-border investments and greatly increase liquidity in African capital markets, particularly as the nation looks to rejoin the FTSE Russell Frontier Markets Index.
They also mentioned that Dangote’s aggressive expansion strategy might receive much-needed funding from the IPO.
With a processing capacity of 650,000 barrels per day, the refinery is currently the biggest single-train operation in the world. But within the next three years, Dangote intends to more than increase this to 1.4 million barrels per day, a level that would compete with the world’s largest refining companies, including those owned by Indian billionaire Mukesh Ambani.
The company recently obtained support from the African Export-Import Bank, which underwrote $2.5 billion of a $4 billion syndicated financing package to finance this expansion.
