Dangote Refinery Gets SEC Approval For ₦525/Share IPO

• Dangote Refinery has received regulatory clearance to proceed with its IPO.

• About 4.1 billion shares are planned for sale at the offer price.

• The transaction is expected to raise roughly $1.5 billion, with a possible 15% greenshoe option.

• The IPO order book is expected to open on Sept. 14, putting the long-awaited offering within days of launch.

September 04, () — Nigeria’s Securities and Exchange Commission has approved the initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE, clearing the way for the sale of 4.1 billion shares at ₦525 each.

Dangote Group disclosed the approval on Friday, bringing the refinery closer to what is expected to be one of Africa’s largest equity offerings. At the offer price, the shares are worth about ₦2.15 trillion if fully subscribed.

The IPO is expected to raise about $1.5 billion, according to people familiar with the transaction cited by Reuters. The offer is expected to open on Sept. 14 and could include a 15% greenshoe option, allowing the refinery to sell additional shares if demand is strong.

Expansion Drives Fundraising

Proceeds from the share sale are expected to help fund Dangote Refinery’s expansion, with the company targeting an increase in processing capacity from 650,000 barrels per day to 1.4 million barrels per day. Built at a cost of about $20 billion near Lagos, the refinery reached its full nameplate capacity earlier this year and has also tested output above that level.

July’s private placement had already raised about $2.5 billion from investors, adding to the capital being assembled for the refinery’s expansion. Dangote also completed a $1 billion underwriting programme in August ahead of the planned IPO.

SEC approval marks a significant leap from June, when the regulator ordered a halt to unauthorised marketing of purported Dangote Refinery shares and said no IPO application had been filed or approved at that time.

For Nigeria’s capital market, the offering comes as a major test of investor appetite for a large-scale industrial asset. A successful transaction would give retail and institutional investors direct exposure to the refinery while providing Dangote with fresh equity to finance its next phase of expansion.