Uganda Opens Dangote Refinery IPO to Investors

Uganda's Capital Markets Authority has approved professional and high-net-worth investors in the country to participate in Dangote Petroleum Refinery's $1.6 billion initial public offering. This move, following a similar approval by Kenya, expands access to the landmark Nigerian share sale beyond its home market. The approval was granted on Tuesday after an application submitted on behalf of the refinery by Stanbic IBTC Capital.

The initial public offering aims to raise approximately ₦2.15 trillion through the sale of 4.1 billion shares at ₦525 each. Access for Ugandan investors is limited to professional and high-net-worth individuals, prohibiting mass advertising or broad solicitation. SBGS Uganda Limited is the only intermediary authorized by the Capital Markets Authority to market the offer. The regulator explicitly stated its approval does not constitute an endorsement or recommendation of the IPO.

This $1.6 billion offering was approved by Nigeria’s Securities and Exchange Commission in September, making it Africa’s largest share sale to date. The Dangote Refinery, built at a reported cost of $20 billion, currently processes 700,000 barrels of crude per day. Proceeds from the IPO are expected to fund the refinery’s planned expansion, aiming to double its capacity to 1.4 million barrels per day.

The expansion into East African capital markets provides Dangote Petroleum Refinery access to a wider pool of investors, broadening the geographic reach of its biggest capital raising exercise. This initiative underscores the ambition to transform a Nigerian share sale into a more accessible African investment opportunity. For investors, it offers a chance to gain exposure to a major industrial asset and Dangote Group's growing regional footprint.

The IPO was initially structured as a Nigerian offer, with Dangote’s advisers engaging in discussions with several other African markets to facilitate participation. Following Kenya's lead, Uganda has now provided a route for its eligible investors. South Africa, Egypt, and Ghana have also held discussions, while Rwanda is actively working towards facilitating access. This ongoing regional push requires regulators and market operators to navigate complex cross-border requirements.