Dangote Refinery IPO Hits $1.6B Target as Investor Demand Surges

Dangote Petroleum Refinery and Petrochemicals has attracted between $1.5 billion and $1.6 billion in funded commitments from Nigerian and retail investors, putting Africa's largest initial public offering on course to meet its fundraising target before international allocations are finalized. Investors from 119 countries have applied for shares in the Nigerian refinery business, valued at almost $50 billion, according to people familiar with the transaction cited by Bloomberg. The offering is scheduled to close on October 27, 2026, following a 2-week extension.

The company is considering exercising a 30% over-allotment option that could increase total proceeds to approximately $2.1 billion. The additional shares would provide room for institutional investors outside Nigeria, whose demand could exceed the available allocation. The reported commitments have been funded, but final allocations remain subject to the closing process and regulatory approvals. A spokesman for Dangote declined to comment on the subscription figures.

The IPO opened on September 14 at 525 naira per share, with a minimum subscription of 10 shares costing 5,250 naira. The offering gives investors access to Dangote's refinery complex near Lagos, which has a processing capacity of 700,000 barrels per day. The facility is part of the billionaire's plan to expand fuel production and exports across Africa. Dangote said on October 14 that investor interest had reached between 3 and 4 times the amount the company was seeking to raise.

Investors from all 54 African countries have requested allocations, according to people familiar with the process. The company has introduced nominee arrangements for participation through Standard Bank, Egypt and Ethiopia, alongside global depositary receipts for investors in Kenya and Botswana. The structures allow investors outside Nigeria to gain exposure to the refinery without purchasing shares through Nigerian brokerage accounts. Kenya's Capital Markets Authority approved a depositary-receipt arrangement in October, subject to requirements for the proposed Nairobi Securities Exchange listing.

Dangote could also consider selling part of his existing stake to investors unable to secure shares through the IPO, according to people familiar with the discussions. No decision has been made on a secondary sale, which would transfer existing shares rather than raise capital for the refinery. The offering could become a benchmark for African companies seeking funding from investors across the continent. Final subscription figures, allocations and the exercise of the over-allotment option will determine how much capital the transaction raises.