Dangote Refinery is set to launch an initial public offering (IPO) expected to raise about $5 billion within the next 10 to 12 days, owner and President of Dangote Group, Aliko Dangote, has announced.
Dangote made the announcement while speaking to investors and analysts during a visit to Botswana.
He also revealed plans to nearly double the refinery’s current capacity, taking it from 650,000 barrels per day to about 1.4 million barrels per day.
“Our dream is to make sure we double the capacity of the refinery,” Dangote said.
The refinery, located in Lagos, is currently Africa’s largest and reached its full nameplate capacity of 650,000 barrels per day in February. It has also successfully tested production at about 700,000 barrels per day.
The planned IPO could become one of the largest public offerings in Africa, providing the refinery with additional capital to support its expansion plans.
Dangote did not disclose the refinery’s profit margins, although the global refining industry has benefited from stronger demand and improved profitability amid disruptions in the Middle East.
Meanwhile, Dangote said Dangote Cement is likely to pursue a secondary listing on the London Stock Exchange in October. The move is expected to give the company greater access to international investors and capital.
Beyond Nigeria, Dangote is also expanding his refining ambitions into East Africa. He said plans are underway to develop a new refinery on Kenya’s coast in partnership with East African governments.
The project is expected to take up to three years to complete and would supply refined petroleum products to Kenya and other neighbouring countries, reducing the region’s dependence on imported fuel.
Dangote said the Kenya project is expected to be launched on September 30 and would represent the group’s largest refining investment outside Nigeria.
