The President of Dangote Industries Limited, Aliko Dangote, has said the initial public offering (IPO) of the Dangote refinery will open within the next 10 to 12 days.
Dangote disclosed this on Thursday while addressing investors and analysts in Botswana, according to Reuters.
The $20bn refinery, located in Lagos and described as Africa’s largest, is expected to raise about $5bn through the offering. If completed as projected, the IPO could become the biggest public offering in Africa.
“Our dream is that we want to make sure we double the capacity of the refinery, which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” Dangote said.
The refinery has a designed processing capacity of 650,000 barrels per day. It reached that level in February and has subsequently recorded output above its stated capacity, with production reaching about 700,000 barrels per day during testing.
Dangote Industries does not publicly disclose the refinery’s profit margins. However, refining margins have strengthened in parts of the global market as geopolitical tensions in the Middle East have encouraged some buyers to seek alternative sources of fuel.
Dangote also outlined plans for further expansion of the group’s businesses during his visit to Botswana.
Dangote Cement is expected to pursue a secondary listing on the London Stock Exchange, potentially as early as October. The move is aimed at giving the cement business access to a wider pool of international investors.
The businessman also confirmed plans for a new refinery on Kenya’s coast, which would be developed in partnership with governments in East Africa.
The proposed facility is expected to supply refined petroleum products to Kenya and neighbouring countries, while helping to reduce the region’s reliance on imported fuel.
If realised, the project would represent Dangote’s most significant refining investment outside Nigeria. Construction is expected to take up to three years.
