Lagos:Aliko Dangote’s refinery business has reportedly secured enough commitments from Nigerian and retail investors to meet its initial public offering (IPO) fundraising target. The commitments, ranging between $1.5 billion and $1.6 billion, have been made to the Dangote Petroleum Refinery and Petrochemicals FZE.
According to Ghana Web, the IPO has raised the prospect of fierce competition among international investors seeking shares in the company. The demand from overseas investors could surpass the shares available, even if the company uses an option to increase the offering size by up to 30%, potentially raising about $2.1 billion.
The IPO process includes nominee investment structures with Standard Bank Group in South Africa, Egypt, and Ethiopia, and global depository receipts offered through stock exchanges in Kenya and Botswana. A spokesperson for Dangote has declined to comment on the developments.
Aliko Dangote, the refinery's owner, has extended the deadline for IPO applications by two weeks to October 27, 2026, to broaden participation across Africa. This effort has resulted in requests for allocations from investors in all 54 African countries and a total of 119 countries globally.
If demand exceeds available shares, Dangote may consider selling part of his personal stake to accommodate investors who do not secure allocations through the IPO. However, this decision will depend on the final order book assessment. The refinery, located in Lagos, Nigeria, is the largest oil-processing complex in Africa, offering significant strategic industrial value.