The Dangote Oil Refinery is planning to launch an Initial Public Offering (IPO) in October 2026 as part of a proposed $5 billion pan-African equity offering aimed at funding expansion, reducing debt and widening ownership of the facility across the continent.
A source familiar with the plan told Reuters that the proposed listing would rank among Africa’s largest equity raises and could deepen capital market participation in the oil and gas sector.
The IPO is being positioned as a pan-African investment opportunity, with the company seeking participation from both domestic and international investors.
Officials said proceeds from the share sale would be used to support the refinery’s growth plans, strengthen its financial position and expand shareholder participation beyond Nigeria.
Advisers to the transaction are still working out the structure for regional participation, including whether investors on selected African markets would receive allocated shares or whether demand would be managed through an open-offer arrangement based on overall subscription levels.
Sources said there are currently no plans to cross-list the offering on multiple African exchanges, although some distribution details could change before the deal is concluded.
The proposed structure would allow investors to receive proceeds in either Nigerian naira or US dollars, a move designed to attract a wider pool of local and international investors.
The planned offering has generated interest among several African stock exchanges, including those in South Africa, Kenya, Egypt, Ghana and Rwanda, which have held discussions with the refinery’s advisers over possible participation.
Kenya’s capital market could account for as much as $500 million of the targeted IPO value, according to a source, who said local investors, including pension funds, had shown significant interest in the offer.
Another source familiar with the transaction said Dangote Petroleum Refinery & Petrochemicals FZE had submitted its IPO application to Nigeria’s Securities and Exchange Commission and was expected to receive regulatory approval in the coming weeks. The company is also expected to publish a prospectus in September.
The final size of the offering will depend on the approval granted by Nigerian regulators, as the primary listing will be on the Nigerian Exchange.
If the full $5 billion target is achieved, the IPO would represent slightly more than four per cent of the Nigerian Exchange’s All-Share Index market capitalisation, which stood at about $116 billion on Tuesday.
Built at an estimated cost of $20 billion, the Dangote Oil Refinery commenced commercial operations in 2024 and attained full production capacity earlier this year. The facility, owned by the Dangote Group, is designed to supply refined petroleum products to Nigeria and other regional markets.
The Nigerian National Petroleum Company Limited holds a stake of slightly above seven per cent in the refinery.
