KEY POINTS
- Dangote Refinery plans to become the world’s largest refinery by 2028.
- Its IPO will offer 4.1 billion shares at N525 each, targeting more than N2tn.
- Investors can subscribe for as few as 10 shares, with Dangote promoting the offer as an “IPO for the people”.
The Dangote Petroleum Refinery is targeting expansion that would make it the largest refinery in the world by 2028, according to Dangote Group President and Chief Executive Officer, Aliko Dangote.
Dangote made the disclosure on Monday at the preliminary signing ceremony for the proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals.
The 700,000-barrel-per-day facility, located in Lagos, is currently the largest refinery in Africa and the world’s largest single-train refinery.
The proposed IPO comprises 4.1 billion ordinary shares priced at N525 each and is expected to raise slightly more than N2 trillion.
Dangote said investors would be able to subscribe to a minimum of 10 shares, making the offer accessible to a broad range of Nigerians.
He explained that the funds raised would be used partly to finance the refinery’s planned expansion as the company seeks to increase its global capacity and reach.
According to Dangote, the IPO is also designed to broaden public ownership of the refinery by allowing Nigerians from different social and economic backgrounds to acquire shares.
He described the offer as an “IPO for the people”, stressing that workers and ordinary Nigerians would have the opportunity to own a stake in one of the country’s largest industrial projects.
Expansion Driven by Energy Security
Dangote linked the refinery’s expansion plans to his broader vision of accelerating industrialisation across Africa.
He said Nigeria and other African countries could not achieve meaningful industrial development without reliable energy security.
The billionaire recalled the challenges encountered before construction began, including difficulties in securing suitable land and financing.
He said the project received financial backing from banks even before the final site had been selected or the refinery’s licence secured, describing the relationship with the lenders as being built on trust. Dangote Refinery Chief Executive Officer, David Bird, said the facility was already the largest supplier of jet fuel to Europe, highlighting the growing international demand for its products.
Bird said the company now expects to complete the next phase of development by 2028, transforming the facility into the world’s largest integrated refinery and petrochemical complex.
The planned expansion would strengthen the refinery’s position in the international petroleum market while potentially increasing Nigeria’s capacity to process crude domestically and supply refined petroleum products to both local and international markets.
Dangote said the public offering would remove barriers to ownership by allowing people across different income groups to participate.
He said the company wanted its drivers, cooks, managers and other workers, as well as Nigerians generally, to have an opportunity to become shareholders.
The IPO therefore serves two purposes: raising capital for the refinery’s expansion and widening public participation in ownership of a major Nigerian industrial asset.
