Aliko Dangote says the Dangote Refinery’s $5bn Pan-African IPO will open within 10 to 12 days as the company plans to double refining capacity.
Aliko Dangote, chief executive officer (CEO) of the Dangote Group, says the initial public offering (IPO) of Dangote Refinery will open in the next 10 to 12 days, putting the launch around mid-September.
According to Reuters, Dangote announced the timeline on Thursday while addressing investors and analysts during a visit to Botswana, where he also met President Duma Boko.
Refinery IPO Details
The refinery had earlier announced plans for a Pan-African IPO, offering at least 10 percent of its refining business to help fund a $40 billion expansion drive. The offering is expected to raise about $5 billion, which would make it the largest public offering in Africa’s history. According to the refinery’s information memorandum, the business is valued at roughly $39.1 billion.
The IPO follows a string of moves to shore up the refinery’s balance sheet ahead of its market debut. In July, the company raised $2.5 billion through a private placement that was subscribed 3.7 times, and on August 18, it announced the completion of a $1 billion underwriting programme. Nigeria’s state oil company, NNPC, holds a 20 percent equity stake in the refinery, separate from the shares being offered in the IPO.
Doubling Capacity
Speaking during his Botswana visit, Dangote said his broader ambition is to double the refinery’s output.
“So our dream is that we want to make sure we double the capacity of the refinery… which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” he said.
The Lagos refinery, Africa’s largest, reached its full nameplate capacity of 650,000 barrels per day in February and has since tested production as high as 700,000 barrels per day.
Cement Listing and Kenya Expansion
Dangote also used the trip to update investors on two other fronts of his business empire. He said the secondary listing of Dangote Cement on the London Stock Exchange (LSE) would most likely take place in October. That plan advanced on Wednesday, when Dangote Cement announced it would hold a capital markets day in London on September 21 as part of preparations for the LSE listing.
Separately, Dangote said construction would begin on a new refinery on Kenya’s coast, developed in partnership with East African governments.
“We are launching it on September 30,” he said.
The Kenyan project is intended to replicate the model of the 650,000 bpd Nigerian refinery, with regional governments providing support. It is expected to take up to three years to complete and would supply refined petroleum products to Kenya and neighbouring countries, reducing East Africa’s reliance on imported fuel, marking what would be Dangote Group’s largest refining investment outside Nigeria.
