Africa’s richest man Aliko Dangote is targeting a $50bn valuation for his Dangote Petroleum Refinery & Petrochemicals ahead of a planned stock market listing expected later this year.
According to reports from Bloomberg, the refinery could sell up to a 10 percent stake on the Nigerian Exce Group, potentially raising about $5bn in one of the largest public offerings in Africa’s capital market history.
A senior executive within the Dangote Group confirmed that the valuation aligns with internal expectations but declined to provide further details on the timing or structure of the listing.
The refinery, operated under Dangote Group, began operations in 2024 and has quickly grown into a major force in Nigeria’s downstream oil sector. It has a refining capacity of 650000 barrels per day and is considered the largest single train refinery in the world.
The planned listing is expected to expand beyond Nigeria, with discussions ongoing for a cross border public offering across multiple African stock exces. The initiative is being coordinated under the African Securities Exces Association to enable wider investor participation across the continent.
The Chief Executive Officer of the Nairobi Securities Exce Frank Mwiti said discussions are focused on building a pan African IPO framework that would remove regulatory barriers and allow seamless trading across jurisdictions.
Dangote has reportedly appointed financial advisers including Stanbic IBTC Capital Limited Vetiva Advisory Services Limited and FirstCap Limited to structure the offering. The CEO of FirstCap Ukandu Ukandu confirmed that advisory work on the transaction has already begun.
The move comes as rising global crude oil prices and growing domestic fuel demand strengthen the refinery’s commercial outlook. Analysts say the listing could significantly boost liquidity in African capital markets and position Nigeria as a leading investment hub.
Dangote also plans to expand the refinery’s capacity to 1.4 million barrels per day within the next three years with financial support already secured from the African Export Import Bank which contributed to a multibillion dollar financing package.
If successful the IPO would mark one of the most significant capital market events in Africa’s history and further cement Dangote’s influence in the global energy sector.
Leave a comment