Africa’s richest businessman, Aliko Dangote, is close to completing a private share sale worth about $2.5 billion for the Dangote Petroleum Refinery. The fundraising comes as the company prepares for what could become the largest initial public offering (IPO) in Africa’s history.
According to reports, investors showed strong interest in the private placement, with demand reaching nearly $4 billion, far above the amount of shares available. The deal involved selling up to 6 percent of the refinery, placing the company’s estimated value at around $40 billion.
People familiar with the transaction revealed that the fundraising was carried out in different stages. The company first raised around $2 billion before securing another $500 million, mainly from institutional investors across Africa. Officials from Dangote Industries have not commented publicly on the report.
This latest fundraising follows another successful financial deal in which the refinery secured $750 million through a debt offering. The funds are expected to support the company’s future expansion plans and strengthen its operations.
The Dangote Petroleum Refinery, located in the Lekki area of Lagos, currently processes about 700,000 barrels of crude oil every day. It is already the largest single-train refinery in Africa and one of the biggest in the world.
Reports suggest that the company plans to launch its IPO as early as August, depending on market conditions and regulatory approval. The public offering could raise an additional $1.5 billion to $2 billion, giving both institutional and retail investors the opportunity to own shares in the refinery.
One major focus of the planned share sale is increasing African ownership. Sources said Aliko Dangote wants Nigerians and other African investors to play a leading role in financing one of the continent’s biggest industrial projects. The IPO is also expected to be promoted to international retail investors, allowing people from different parts of the world to participate.
The money raised from both the private placement and the IPO will help finance a major expansion of the refinery. The company plans to increase its processing capacity from 700,000 barrels per day to 1.4 million barrels per day by 2028. If achieved, the refinery will become one of the largest refining complexes globally.
The expansion comes as countries continue to search for reliable fuel suppliers due to ongoing global energy challenges and supply disruptions caused by geopolitical tensions. As demand for refined petroleum products grows, the Dangote Refinery is expected to play an even more important role in supplying fuel across Africa.
Since beginning commercial operations, the refinery has supplied petrol, diesel, aviation fuel, and other petroleum products to Nigeria while increasing exports to neighboring African countries. The project has also helped reduce Nigeria’s dependence on imported fuel, saving foreign exchange and improving local fuel supply.
Commissioned in 2023 after several years of construction, the refinery was built to address Nigeria’s long-standing reliance on imported refined petroleum products despite being Africa’s largest producer of crude oil. The facility has become one of the country’s most significant industrial investments.
If the planned IPO is successfully completed, it will mark another major milestone for Dangote’s business empire. It is expected to rank among the biggest capital market transactions ever seen in Africa, while opening the door for millions of investors to own a stake in one of the continent’s most important energy projects. The listing is also expected to strengthen investor confidence in Nigeria’s capital market and support the long-term growth of Africa’s energy sector.
