Dangote Refinery’s $5bn IPO Could Reach South Africa After Nigeria Listing

• Dangote Refinery is targeting a $5bn IPO in Nigeria.

• Johannesburg wants the refinery on its exchange next.

• Kenya could also feature in the wider fundraising plan.

• Dangote wants Africans to own part of the business.

August 07, () — Dangote Refinery is preparing for a $5 billion initial public offering that could give investors across Africa access to one of the continent’s largest industrial projects.
The Nigerian Exchange is expected to host the primary listing, with Dangote Group targeting an October debut.

Also, the Johannesburg Stock Exchange has already engaged the company and confirmed it hopes to list the refinery in South Africa after the Nigerian IPO.

“They will list in Nigeria first but with strong intent to hopefully bring the listing to South Africa,” the JSE said in an emailed response.

Built at an estimated $20 billion, Dangote Refinery has a capacity of 650,000 barrels per day. Production began in 2024 and the plant reached full capacity earlier this year.

By May, it was supplying about 90% of Nigeria’s petrol demand, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

From Nigeria’s Refinery To An African Investment Opportunity

Dangote’s proposed share sale could rank among Africa’s largest IPOs, while giving the Nigerian capital market one of its most significant transactions.

Sources familiar with the plans told Reuters that Dangote Group has made a preliminary filing with the Securities and Exchange Commission and is targeting an October listing.

Aliko Dangote has also said the IPO should allow Africans to participate in the ownership of the refinery.

During a visit by representatives of South Africa’s Government Employees Pension Fund, Public Investment Corporation and Alterra Capital Partners in May, he described the planned listing as a way to “democratise wealth creation.”

Interest extends beyond Johannesburg. Sources said Dangote Group has explored opportunities in Kenya, Egypt, Ghana and Rwanda, with Kenya potentially raising about $500 million as part of the wider fundraising.

A South African listing would give Dangote access to investors on one of Africa’s deepest and most established exchanges.

For Johannesburg, securing a company of the refinery’s scale would strengthen its position as a destination for major African listings.

Dangote also plans to expand the refinery’s capacity to 1.4 million barrels per day by 2028, creating a potential need for substantial additional capital.

Investors will still have to assess the business on its fundamentals, including its eventual valuation, earnings, operating costs, exposure to crude prices and foreign exchange, and the amount of equity Dangote Group plans to sell.

Regulatory approval remains another step. In June, the SEC warned investors about fake Dangote Refinery IPO advertisements and said it had not approved a purported public offering at the time.

Nigeria remains the first market for the planned listing.

If Johannesburg follows, and other African exchanges eventually participate, Dangote Refinery could become an important test of how much capital African markets can mobilise for African businesses.

For investors, it could also mark a rare opportunity to buy into one of the continent’s largest industrial assets from its public-market debut.