Nigeria’s Dangote Petroleum Refinery is seeking to raise about US$1 billion through a private placement as it prepares for a future stock market listing, according to a placement document and sources familiar with the transaction.
The fundraising exercise values the refinery at approximately US$39.1 billion, underscoring investor confidence in one of Africa’s largest industrial projects.
Under the offer, the company is selling three billion ordinary shares at US$0.35 each. Investor interest has already surpassed $2 billion, more than double the amount being sought, sources said.
The private placement marks another milestone for the refinery, which began operations last year and has been steadily ramping up production in a bid to reduce Nigeria’s dependence on imported refined petroleum products.
According to the placement document, investors must subscribe to a minimum of one million shares, equivalent to US$350,000. Additional purchases can be made in multiples of 500,000 shares.
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The shares will be subject to a 365-day lock-up period, preventing investors from selling their holdings for one year after purchase.
The fundraising comes as the refinery positions itself for a planned public listing, a move that could broaden ownership of the company and provide additional capital for future expansion.
Located in the Lekki Free Zone near Lagos, the refinery is owned by Nigerian billionaire Aliko Dangote and is widely regarded as one of the most ambitious industrial investments on the African continent.
With a processing capacity of 650,000 barrels per day, the facility is designed to meet Nigeria’s domestic fuel demand while also supplying refined products to regional and international markets.
For decades, Africa’s largest oil producer has relied heavily on imported fuel despite being a major crude oil exporter, largely due to inadequate refining capacity. Successive governments have viewed the Dangote refinery as a key part of efforts to achieve energy security and reduce pressure on foreign exchange reserves.
Since commencing operations, the refinery has increased output of products including petrol, diesel, aviation fuel and liquefied petroleum gas. Industry analysts say its growing production has begun reshaping fuel supply dynamics in Nigeria and across West Africa.
The planned capital raise also comes at a time when investors are showing renewed interest in large-scale African infrastructure and industrial projects, particularly those linked to energy and manufacturing.
Strong demand for the private placement suggests investors are optimistic about the refinery’s long-term prospects despite challenges including volatile crude prices, foreign exchange pressures and regulatory uncertainty in some African markets.
The valuation of about US$39.1 billion would place the refinery among the most valuable privately held industrial assets in Africa.
Neither Dangote Refinery nor its parent group has publicly commented on the details of the transaction.
Market participants said the oversubscription reflects confidence in the refinery’s ability to generate substantial revenues as production continues to increase and exports expand.
A successful private placement would strengthen the company’s balance sheet ahead of its anticipated listing, which is expected to attract significant attention from both local and international investors seeking exposure to Africa’s energy sector.
The refinery’s emergence as a major regional supplier is also being closely watched by governments across West Africa, many of which depend heavily on imported fuel and hope the facility will help improve energy availability and lower supply costs across the region.
