Dangote Refinery secures $2.5 bn private placement ahead of IPO

Dangote Petroleum Refinery has completed a $2.5 billion private placement, selling about 6 % of the company and valuing the Lagos‑based asset at roughly $40 billion. The offer comprised 3 billion ordinary shares at $0.35 each, with a minimum subscription of 1 million shares and a 365‑day lock‑up. Demand exceeded supply, with investors reportedly seeking around $4 billion, including Femi Otedola’s $100 million commitment and participation by Nigerian pension fund administrators.

The capital will fund the refinery’s expansion as it ramps up production of diesel, jet fuel, naphtha and petrol, reducing Nigeria’s reliance on imported fuels. The fundraising follows a earlier $750 million bond issuance and precedes an anticipated initial public offering as early as August, which could raise an additional $1.5‑$2 billion, potentially becoming Africa’s largest IPO. The listing is expected on the Nigerian Exchange, with further plans announced for a 700,000‑barrel‑per‑day refinery in Kenya.