Dangote Opens $1.6bn Refinery IPO to East Africa, Offers Investors $300m Slice

Dangote Petroleum Refinery has expanded its ongoing $1.6 billion Initial Public Offering to East African investors, making about $300 million worth of shares available through approved regional investment channels.

The move follows regulatory approvals in countries including Kenya and Uganda, allowing eligible investors in the region to participate in the share offer through global depository receipt structures and other approved mechanisms.

The refinery, Africa’s largest single-train refining facility, launched the IPO last month as part of plans to broaden ownership, raise capital for expansion and deepen retail investor participation across the continent.

Dangote Petroleum Refinery is seeking to raise up to 2.15 trillion naira, equivalent to about $1.6 billion, in what has been described as Africa’s largest share sale to date.

Chief Executive Officer David Bird said the company aims to attract as many as 10 million retail investors, surpassing the number of retail participants recorded during Saudi Aramco’s 2019 public offering.

“Our benchmark is the Aramco listing,” Bird said during the Fujairah Energy Markets Forum, noting that the refinery intends to build broad African ownership through the offer.

Kenya’s Capital Markets Authority recently approved a short-form prospectus enabling investors in the country to participate in the IPO, while Uganda’s regulator also authorised domestic investors to subscribe to the offer.

The expansion into East Africa reflects Dangote Refinery’s growing regional footprint. The refinery already exports petroleum products to several African countries and is exploring additional investments across the continent, including a proposed refinery project in Kenya’s Lamu region.

Located in Lekki, Lagos State, the refinery currently processes about 650,000 barrels of crude oil per day and has plans to expand capacity further in the coming years.

Market analysts say wider African participation in the IPO could strengthen regional capital market integration and provide investors with access to one of the continent’s largest industrial projects.

The public offer remains subject to regulatory conditions and allotment procedures in participating countries.