Dangote refinery set for stock market debut at N525

The Securities and Exchange Commission has approved the commencement of the Initial Public Offering of Dangote Petroleum Refinery and Petrochemicals FZE, paving the way for the company to raise approximately N2.15tn from the Nigerian capital market.

According to a statement by the Dangote Group on Friday, the approval was conveyed in a letter to the Lead Issuing House, Vetiva Advisory Services Limited, and signed by the Director of the Securities and Investment Services Department of the SEC, Abdulkadir Abbas.

According to the statement, the proposed offer comprises 4.1 billion ordinary shares at N525 per share, which could raise approximately N2.15tn if fully subscribed.

The SEC has also registered the company’s existing 120.13 billion ordinary shares. The statement said the regulatory approval had cleared the refinery’s draft offer documents and authorised the company to proceed with its completion board meeting and signing ceremony.

“The regulatory approval clears the refinery’s draft offer documents and authorises the company to proceed with its completion board meeting and signing ceremony, marking a significant milestone in the IPO process,” the statement said.

It added that the SEC clearance would create an opportunity for investors to participate in the ownership of the refinery while deepening the Nigerian capital market.

“The SEC’s clearance represents another major step in the evolution of Dangote Petroleum Refinery, opening investment opportunities in one of Africa’s most strategic industrial assets and further strengthening Nigeria’s capital market,” the statement said.

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Located in Ibeju-Lekki, Lagos, the Dangote Refinery and Petrochemicals Complex occupies approximately 2,635 hectares and houses an integrated refining and petrochemicals facility.

The complex currently has a refining capacity of 700,000 barrels per day, alongside a 900,000-tonnes-per-annum polypropylene plant. It is powered by a dedicated 435-megawatt power plant.

At full production, the refinery is designed to satisfy Nigeria’s domestic demand for refined petroleum products while generating substantial volumes for export markets. The facility is also undergoing expansion expected to increase its capacity to 1.4 million barrels per day, which would make it the world’s largest refinery.

The refinery is supported by a marine facility designed to optimise logistics and freight efficiency, while its infrastructure includes five Single Point Moorings. The company said the facility incorporates advanced processing technology that meets World Bank, United States Environmental Protection Agency, European emission standards and Nigerian regulatory requirements.

Its integrated port infrastructure includes multiple quays capable of handling Panamax vessels, liquid cargo shipments and roll-on/roll-off operations. The refinery also has 177 storage tanks with a combined capacity of 4.742 billion litres.

With the SEC approval, the proposed IPO represents a major step in Dangote refinery’s plan to broaden investor participation in the company and raise fresh capital through the Nigerian capital market.