Dangote has priced its refinery shares at ₦525

Dangote Group has set the share price for its refinery unit at ₦525 each ahead of its planned public offering, which could bring in around ₦2.15 trillion if fully subscribed.

The Securities and Exchange Commission (SEC) has approved the Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE, clearing the way for the company to proceed with the share sale.

The offer will comprise 4.1 billion ordinary shares at ₦525 per share, while the existing 120.13 billion shares of the company have also been registered with the SEC.

The order book for the offer is expected to open on September 14, according to people familiar with the transaction who spoke to Reuters. The offering could become one of the largest capital market transactions in Nigeria and Africa. 

The SEC approval was conveyed in a letter to the lead issuing house, Vetiva Advisory Services Limited, and signed by Abdulkadir Abbas, director of the Securities and Investment Services Department.

“According to the Commission, the proposed offering comprises 4.1 billion ordinary shares at ₦525 per share, with the potential to raise approximately ₦2.15 trillion if fully subscribed,” the refinery said.

The company said the approval authorises it to proceed with the next stages of the IPO process, including its Completion Board Meeting and Signing Ceremony.

The funds raised will support the expansion of the refinery, with the company planning to increase its capacity from 700,000 barrels per day to 1.4 million barrels per day.

Aliko Dangote, president of Dangote Industries, had earlier disclosed that the IPO would open within 10 to 12 days.

The refinery, located in Ibeju-Lekki, Lagos, currently has a refining capacity of 700,000 barrels per day and includes a 900,000-tonnes-per-year polypropylene plant. It is powered by a dedicated 435-megawatt power plant.

The company said the facility is designed to meet Nigeria’s domestic demand for refined petroleum products while also supplying export markets.

“With SEC approval secured, the refinery is set to proceed with a public offering that could significantly broaden investor participation in one of Nigeria’s major industrial ventures,” the company said.

The planned share sale comes after the refinery completed a $1 billion underwriting programme in August to support the IPO.

If the offering is fully subscribed, the 4.1 billion shares at ₦525 each would generate approximately ₦2.15 trillion, or about $1.5 billion based on the exchange rate cited in the transaction.

The refinery is also undergoing an expansion that Dangote Group says will eventually position the facility as the world’s largest refinery, with a capacity of 1.4 million barrels per day.