Accra: Aliko Dangote has nearly completed a $2.5 billion private stock placement for his refinery business, as the company prepares for Africa's largest initial public offering. According to Ghana Web, Africa's richest person sold a stake representing as much as 6% of Dangote Petroleum Refinery and Petrochemicals FZE at a pricing that would value the company at about $40 billion. This significant move is part of a broader effort to deepen local participation in one of Africa's most strategic industrial assets.
The fundraising comes ahead of a planned IPO that could raise an additional $1.5 billion to $2 billion, with a public listing expected as early as August. Business Insider Africa previously reported on Dangote's intentions to list the refinery on the Nigerian Exchange. This effort reflects Dangote's consistent advocacy for greater African ownership of major infrastructure projects, a strategy that has been embraced by regional investors during the private placement.
In addition to the private share placement, the refinery recently secured $750 million through a debt offering, further strengthening its capital base. The 650,000 barrels-per-day refinery, which began production in 2024, has expanded its output across diesel, aviation fuel, naphtha, and petrol. This expansion has significantly reduced Nigeria's reliance on imported refined petroleum products.
The latest fundraising will help finance an ambitious expansion aimed at more than doubling the refinery's processing capacity to 1.4 million barrels per day by 2028. If successful, this expansion would position the Dangote refinery among the world's largest refining complexes. Dangote is also considering building a refinery in Kenya worth between $15 billion and $17 billion. The proposed facility, with an estimated processing capacity of up to 700,000 barrels of crude oil per day, would become the largest refinery in East Africa if completed.