Dangote Launches Africa’s Biggest IPO With $1.6 Billion Share Sale

BREAKING NEWSSeptember 14, 2026 at 9:42 AM UTC

TLDR

Dangote Petroleum Refinery launched Africa's largest IPO targeting retail and institutional investors, offering 4.1 billion shares at ₦525 each.
The refinery near Lagos plans to double its capacity by 2029, reporting $1.82 billion profit in the first half of 2026.
Investors can apply for as few as 10 shares at ₦5,250, with the offer valuing the refinery at about $47 billion.

Dangote Petroleum Refinery opened its initial public offering on September 14, starting a share sale that could raise ₦2.15 trillion, or about $1.6 billion, in Africa’s largest IPO. The company is offering 4.1 billion shares at ₦525 each. The offer closes October 13, with trading on the Nigerian Exchange expected to begin in November.

The refinery is targeting retail investors as well as institutions. Investors can apply for as few as 10 shares, costing ₦5,250. If demand exceeds the base offer, Dangote can use a greenshoe option that could increase proceeds to about $2.1 billion. The offer values the refinery at about $47 billion.

The plant near Lagos processes 700,000 barrels of crude a day and supplies much of Nigeria’s locally produced gasoline. It also exports diesel and jet fuel to markets in Africa and Europe. The refinery has benefited from fuel supply disruptions linked to the Iran war, which increased refining margins and demand for alternative suppliers.

Dangote plans to spend $14.3 billion to double capacity to 1.4 million barrels a day by 2029. The refinery reported $1.82 billion in profit after tax in the first half of 2026 on revenue of more than $13 billion, reversing a $476 million loss in 2025. The IPO follows a $2.5 billion private placement in July that was 3.7 times subscribed.

Some investors are questioning whether the offer price already reflects much of the refinery’s growth plans. Delays or higher costs in the expansion could affect future returns. Dangote, however, expects retail demand to support the offer as the company opens ownership of an asset built at a cost of about $20 billion.

Foreign investor? No BVN. No Nigerian bank account.

You can invest in the Dangote Refinery IPO through Daba. Click here to submit your application→ dabafinance.com/register

Key Takeaways

The IPO gives investors their first chance to put a public market price on Dangote Refinery, and the main debate will be whether its earnings can support a valuation of about $47 billion. The company enters the market with several points in its favor: it processes 700,000 barrels a day, has become a supplier to Nigeria and export markets, and reported $1.82 billion of first-half profit. But the valuation also assumes that the refinery can maintain margins and execute a $14.3 billion expansion that would double capacity by 2029. The offer itself represents only a small part of the company’s total shares, meaning Aliko Dangote will retain control after the listing. For Nigeria’s capital market, the transaction is also a test of how much money local investors can absorb in one deal. A ₦2.15 trillion raise could pull cash away from existing stocks during the subscription period, while a successful listing would add one of Africa’s largest companies to the NGX. The refinery’s future returns will depend on crude supply, global fuel prices, operating costs, debt and execution of the expansion. The IPO gives investors access to the business, but its size does not remove those risks.

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