Dangote opens refinery ownership to Africans for N5,250

Aliko Dangote is opening ownership of his $20 billion-plus refinery to retail investors across Nigeria and other African markets for as little as N5,250, as the company seeks to raise N2.15 trillion from the capital market to fund part of a planned $14.3 trillion expansion.

The Dangote Petroleum Refinery and Petrochemicals FZE is offering 4.1 billion ordinary shares at N5,250 each, with investors required to subscribe for a minimum of 10 shares. The prospectus says the offer is intended to “broaden public ownership of the Issuer”, while strengthening its refining and petrochemicals capacity.

At the minimum subscription, an investor would need N5,250 to participate. The offer is scheduled to open on September 14 and close on October 13, 2026.

The bigger significance of the listing, however, is the capital required to turn the refinery into an even larger refining platform.

The company currently operates approximately 700,000 barrels per day of refining capacity and plans to add “a further approximately 700,000 barrels per day”, potentially taking capacity to about 1.4 million barrels per day.

The expansion is targeted for completion in 2029 and has an estimated aggregate capital expenditure of approximately $14.3 billion.

Read also: Dangote refinery targets $1.6bn in Nigeria’s biggest IPO

The IPO will generate N2.1525 trillion before expenses. After estimated offer costs of N41.49 billion, the company expects to retain N2.111 trillion, which the prospectus says “will be applied towards growth capital expenditure” for…