Uganda has approved the participation of eligible domestic investors in the initial public offering of Nigeria’s Dangote Petroleum Refinery and Petrochemicals FZE, expanding the reach of the refinery’s share sale into another East African market.
The Capital Markets Authority of Uganda said it had approved the promotion, marketing and distribution of the IPO in Uganda following an application submitted by Stanbic IBTC Capital Ltd. on behalf of the refinery.
The approval allows Ugandan investors to participate through capital market intermediaries licensed by the Ugandan regulator. However, access is restricted to high net worth individuals and professional investors. The offer cannot be promoted through mass advertising or broad solicitation directed at the general public.
As of the date of the regulatory notice, SBG Securities Uganda Ltd. was the only intermediary authorised to market and distribute the offer to Ugandan investors. The regulator said additional approvals for other intermediaries would be announced separately.
The Uganda approval follows Kenya’s decision earlier in the week to allow eligible Kenyan investors to participate in the Dangote refinery IPO through a global depository receipt structure. The moves give the Nigerian refinery access to a wider pool of African investors as it seeks to raise capital for expansion.
$1.6 billion capital raising
Dangote Petroleum Refinery launched the IPO in September, offering 4.1 billion ordinary shares at ₦525 each. The offer could raise about ₦2.15 trillion, equivalent to approximately $1.6 billion, if fully subscribed.
The offer is scheduled to close on Oct. 13, with a minimum subscription of 10 shares for investors participating in Nigeria. The transaction is expected to result in the refinery being listed on the Nigerian Exchange.
The proceeds will support plans to expand the Lagos refinery’s processing capacity from about 700,000 barrels of crude per day to 1.4 million barrels per day. The facility, built by Dangote Group at a reported cost of about $20 billion, began operations in 2024.
Chief Executive Officer David Bird said the company is targeting 10 million retail investors for the IPO, making broad investor participation a major component of its capital raising strategy.
Investor safeguards
The Ugandan regulator stressed that its approval does not amount to an endorsement or recommendation of the investment.
CMA Uganda said it had not independently assessed the commercial merits, financial viability or expected performance of the securities. It also warned prospective investors about risks associated with investing in securities issued in a foreign jurisdiction, including foreign exchange, market, custody and taxation risks.
The regulator said investors should review the offer documents carefully and seek independent professional advice before committing funds. It also directed investors to deal only with licensed and authorised intermediaries.
The cross border approvals in Kenya and Uganda reflect growing interest in the Dangote refinery among African investors and point to deeper links between capital markets across the continent.
For Uganda, the approval provides eligible investors with access to a major Nigerian energy asset while requiring participation through a regulated framework. For Dangote Petroleum Refinery, the expansion into East African markets could broaden the investor base for what is being positioned as one of Africa’s largest public share offerings.
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