Dangote Petroleum Refinery & Petrochemicals FZE has submitted its application for an initial public offering (IPO) of shares to Nigeria’s Securities and Exchange Commission. It is expected to be Africa’s biggest IPO and to raise up to $5 billion with the launch of the IPO possible in September. The final figure will depend on the SECN because the primary listing will be on the Nigerian Exchange (NGX).

The company is majority owned by Aliko Dangote, dubbed Africa’s richest man, who has invested significantly in Nigeria and across Africa, and has also profited handsomely.

The SECN Director General Emomotimi Agama confirmed receipt of the application and said the company’s advisor team are working closely with the SEC officers. According to this story on African Markets, Agama said no official date has been set but the offer is still targeted for September 2026, as suggested by Dangote in July.

Business Day quotes Agama saying in an interview “If any issue arises, SEC will resolve it. That is why the SEC exists,”

News agency Reuters confirmed in an “exclusive” story on 4 August that the offer will seek to raise about $5bn and is expected to close in October, reporters Duncan Miriri and Chijioke Ohuocha cite sources who are not named. Other accounts such as African Markets have suggested the initial raise may be smaller, for example $1bn.

Reuters reports that Dangote plans to raise funds to expand the capacity of his refinery in Lagos which produces 650,000 barrels per day and is Africa’s biggest. Dangote has said he plans to boost capacity to 1.4m barrels a day. We gave extensive background in ACMN‘s story in April where we reported “The offer is set to be for 5%-10% of the share capital of the company which some analysts value at between $40bn and $50bn.”

The Lagos refinery cost around $20bn and started operations in 2024 before attaining full capacity earlier in 2026. It has benefitted considerably from raised demand because of the US war on Iran (see this Reuters story from March). Nigeria’s state oil firm NNPC owns over 7%.

$40bn valuation from $2.5bn private placement

In July, the company concluded a private placement ahead of the listing which raised $2.5bn by selling a 6% stake in the company, valuing it at over $40bn, according to Reuters. The refinery has been extremely profitable but Reuters says the valuation is higher than other globally listed refinery companies with similar capacity.
The private placement was executed in two tranches of $2bn and $500m at $0.35 a share.

African Markets reports that it was oversubscribed 3.7 times, with demand approaching $4bn. Regional and international institutional investors took part, including Africa Finance Corporation and India Infra Buildco. The shares acquired are subject to a 365-day lock up period. The article adds “The logic holds together: first demonstrate investor appetite through a private transaction, then formalize the opening to the public”.

Excitement stirs Nigerian market

Agency Bloomberg reported in June of retail appetite across Nigeria and among the diaspora. Part of the attraction is that the shares are flagged to pay dividends in either NGN or USD, depending on investors’ choice.
Bloomberg reporters Emele Onu, Ruth Olurounbi, and Anthony Osae-Brown write: “The IPO’s ‘significance goes beyond the transaction itself,’ said Danladi Verheijen, the Lagos-based managing partner of private equity firm Verod Capital Management. ‘It has the potential to strengthen the foundations of the market in ways that matter directly to long-term investors.’

“Demand for the sale has also been bolstered by a 58% jump — in dollar terms — in Nigeria’s benchmark stock index this year, second only to South Korea’s AI-driven market rally.

“Dangote’s firms have made money for investors. The group’s cement unit has gained seven-fold since its initial share sale in 2010, while Dangote Sugar Refinery Plc has advanced almost fourfold since 2007.” But it also notes that refining margins can be very volatile.

Market commentators, for example NGNMarket.com, report funds are selling other top quality Nigerian shares in August in order to free up cash and rebalance portfolios ahead of the Dangote Refinery IPO.

Femi Otedola, chairman of FirstHoldCo, committed $100m to the placement and told reporters he liquidated his entire holding in Geregu Power Plc to fund it (see Business Day story).

Nigeria’s National Pension Commission (PenCom) issued a Circular on 13 May to allow Pension Fund Administrators to invest in the Dangote Refinery IPO. At the end of June, assets under management at the pension funds were NGN 30.6 trillion ($22.1bn) according to the Pencom website.

Meanwhile there has been huge activity signing the general public up for accounts and setting up credit lines to invest. The SECN clamped down with a “cease and desist” circular on 23 June, warning registered capital market operators, especially stockbrokers and digital platform promoters to “Cease with immediate effect from publishing, reposting, or distributing any promotional material, flyer, or commentary relating to the acquisition or allocation of shares in the Refinery; Remove or take down all such unauthorized marketing materials from websites, social media handles (including X, LinkedIn, Instagram, Facebook etc.), and messaging groups within twenty-four (24) hours of this notice; Desist forthwith from accepting deposits, commitments, account openings, or expressions of interest from members of the investing public for this purported public offering; and Reverse and refund all funds already collected in connection with this purported offering to clients within twenty-four (24) hours of this notice.”

Pan African capital raise

Some of the capital is expected from a ground-breaking pan-African raise, to reduce the impact on the Nigerian market. As we reported in April, on 1 April senior leaders of the Johannesburg Stock Exchange (JSE), Ghana Stock Exchange (GSE), Ethiopian Securities Exchange (ESX), Bourse Régionale des Valeurs Mobilières (BRVM), and Nairobi Securities Exchange (NSE) travelled to Lagos to meet Dangote. Since then the Rwanda Stock Exchange and the Egyptian Exchange are also reported to be in talks.

However, the current priority is to get the NGX capital raise and listing finalized, and then to target other exchanges either through dual-listing the shares or through African depositary receipts or other instruments.
Reuters reports that Kenyan investors could raise as much as $500 million of the Dangote IPO target. Reuters’ unnamed source said there is “tremendous” appetite for the issue among local investors such as pension funds.

The listing is set to boost the market capitalization (the total value of shares listed) on the NGX by 30%-45%.