Dangote seeks $1.5B in IPO for Africa’s largest refinery, plans to double capacity

Aliko Dangote is taking Africa’s largest oil refinery public. The Dangote Petroleum Refinery & Petrochemicals IPO is targeting approximately $1.5 billion on the Nigerian Exchange, with a potential 15% greenshoe option that could push the total raise even higher.

The order book for shares is set to open on September 14, with a listing price of N525 per share, roughly $0.40. The offering represents about 10% of the business through 4.1 billion shares.

A private placement that set the stage

In July 2026, Dangote completed a $2.5 billion private placement that was oversubscribed by a factor of 3.7. That round valued the refinery at approximately $40 billion.

The refinery began full operations in 2024 after a construction journey that cost approximately $20 billion. Its nameplate capacity sits at 650,000 barrels per day, making it the largest single-train refinery on the African continent.

The regulatory path to the IPO wasn’t entirely smooth. Nigeria’s Securities and Exchange Commission stepped in during June 2026 to halt unauthorized marketing of the offering. By early September 2026, the SEC had approved the IPO documentation, clearing the way for the formal listing process.

Where the money goes

Dangote plans to use the capital to double the refinery’s capacity to 1.4 million barrels per day.

The refinery has already positioned itself as a meaningful supplier of jet fuel to both Europe and Africa, stepping into gaps created by global supply disruptions, including those related to Iranian supply constraints.

What this means for African capital markets

The $40 billion valuation from the private round sets an interesting benchmark. If the IPO prices at that same level, the Dangote refinery alone could represent a significant percentage of the Nigerian Exchange’s total market capitalization.

The $20 billion construction cost was funded through a combination of equity, debt, and persistence through years of delays. Taking it public validates the thesis that private African capital can build infrastructure at a scale typically associated with state-backed enterprises or multinational consortiums.

Risk factors include crude oil price volatility, Nigerian regulatory and currency risks, and the challenge of executing a capacity doubling on schedule and on budget, given that the original refinery took years longer and cost significantly more than initial projections.

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