Aliko Dangote has confirmed that the Dangote Refinery Initial Public Offering (IPO) will launch in September after attracting investor interest of nearly $2 billion ahead of its official market entry.
The President and Chief Executive of Dangote Group, Aliko Dangote, disclosed the timeline during a media interaction in Lagos on Wednesday after a refinery tour with First HoldCo chairman Femi Otedola and other top executives.
However, Dangote said the company planned to enter the market by September. He stressed that preparations for the IPO had reached an advanced stage.
“We are trying to make sure that by September, we’ll be out there in the market to sell the IPO,” he said.
Furthermore, he said investors had already shown strong demand even before the formal launch of the offer.
Investors Signal Strong Demand Ahead of Offer
Meanwhile, Dangote said interest in the refinery’s private placement had already reached about $2 billion.
“Right now, when we even say we are going to do private placement, already we have people who have actually requested to buy. And we have an amount of almost $2 billion,” he said.
Consequently, he noted that the company would review allocation decisions once the IPO structure becomes final.
“We are not selling after that, but we’ll see what we can allocate to them,” he added.
Furthermore, he explained that the IPO aims to broaden ownership and allow wider public participation in the refinery’s growth.
Refinery Targets Wider Public Ownership
However, Dangote said the goal goes beyond institutional investors. He said the company wants more ordinary investors to participate early.
“What we are trying to do is actually bringing in people when it is at this low level and for them to have an upside,” he said.
Meanwhile, he compared the vision to global tech stocks, noting long-term value creation for investors.
“We want it to be like when you buy Amazon or you buy Apple… everybody has become a millionaire,” he said.
Otedola Plans $100m Investment
In response, Femi Otedola disclosed plans to invest $100 million in the refinery through the private placement.
“On a personal note, I’ve appealed to him… my compensation is he’s going to allocate to me shares worth $100 million,” Otedola said.
Furthermore, he said he sold his stake in Geregu to fund the planned investment in the IPO.
Lekki Refinery Strengthens Market Position
The refinery, located in the Lekki Free Zone, Lagos, has a capacity of 650,000 barrels per day. It stands as Africa’s largest single-train refinery.
However, operations began large-scale production of diesel, aviation fuel and petrol in 2024 after years of construction and about $20 billion in investment.
Consequently, the planned IPO is expected to rank among the biggest capital market transactions in Africa. Reports also suggest the company could be valued at up to $50 billion, with about 10% offered to investors.
In response, analysts say the refinery has reduced Nigeria’s dependence on imported fuel and strengthened local refining capacity.
