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Dangote Refinery targets $1 Billion fundraising

Aliko Dangote, Africa's wealthiest man, smiles during the opening ceremony of Africa's biggest oil refinery in Lagos, Nigeria, Monday, May 22, 2023.   -  
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Nigeria

Nigeria’s Dangote Petroleum Refinery is taking a major step toward becoming a publicly traded company. The refinery is seeking to raise around one billion dollars through a private share placement, in a deal that values the company at roughly 39 billion dollars.

According to documents seen by investors, Dangote is offering three billion ordinary shares at 35 cents each, with demand already exceeding two billion dollars.

Investors must purchase at least one million shares, with the funds earmarked for expansion and broader corporate growth.

The 650,000-barrel-per-day refinery, owned by billionaire Aliko Dangote, began fuel production in 2024 and has rapidly increased output of petrol, diesel, aviation fuel and other refined products.

The facility has helped reduce Nigeria’s dependence on imported fuel while expanding exports across Africa and beyond.

Industry observers say the fundraising could support investments in logistics, storage and distribution infrastructure, as well as future petrochemical projects.

The move is also widely seen as a precursor to a long-anticipated public listing, which Dangote has previously indicated could take place later this year.

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