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Dangote Refinery Seeks $1 Billion In Private Share Sale

Dangote Petroleum Refinery plans to raise about $1 billion through a private placement that values the company at $39.1 billion.

The refinery offers 3 billion ordinary shares at $0.35 each. Sources said investor demand already surpassed $2 billion.

Investors must buy a minimum of 1 million shares, equal to $350,000, with further purchases in multiples of 500,000 shares. The shares carry a 365-day lock-up period.

The company intends to use the funds for expansion and general corporate purposes.

Officials aim to strengthen operations as the refinery increases production and improves its market position
The 650,000 barrels-per-day facility began production in 2024.

It now makes diesel, aviation fuel, naphtha and petrol. The output greatly reduces Nigeria’s dependence on imported refined products.

Market observers expect the company to invest more in logistics, storage and distribution.

The group may also expand into petrochemicals. The private placement could prepare the way for a public listing later this year, as billionaire owner Aliko Dangote previously indicated.

Meanwhile, Standard Bank Group reaffirmed its support for Dangote Industries.

During a visit to the refinery and fertiliser complex in Lagos, Standard Bank Chief Executive Sim Tshabalala described the project as transformational for Nigeria and Africa.

He said the bank plans to play a leading role in the upcoming initial public offering and future projects.
Dangote officials noted that the refinery recently exceeded its design capacity.

It completed test runs at 700,000 barrels per day.

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