The Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of Dangote Refinery, paving the way for what could become the largest share sale ever undertaken in Africa.
The offer involves 4.1 billion ordinary shares priced at N525 each, with the company expected to raise about N2.15 trillion if the subscription is fully taken up.
Dangote Group also disclosed that the SEC registered more than 120 billion existing shares in the refinery, placing the company’s estimated valuation at about $47 billion.
The 650,000-barrel-per-day refinery, built at a cost of about $20 billion, has expanded Nigeria’s refining capacity and boosted exports of petroleum products to markets in Africa and Europe.
According to the company, funds from the public offer will support plans to increase the refinery’s production capacity from 650,000 barrels per day to 1.4 million barrels per day.
The IPO is expected to open for subscription on September 14, while a formal signing ceremony with the Nigerian Exchange is scheduled to take place next week.
Dangote Group President, Aliko Dangote, said the offer would allow investors across Africa, including Nigerian retail investors, to participate in the refinery’s growth as it pursues its long-term expansion strategy.
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