Nigeria’s Dangote Petroleum Refinery has closed its initial public offering (IPO) after attracting orders worth about ₦6.4 trillion, roughly three times its original fundraising target, in a share sale described as a landmark for Africa’s capital markets.
The offer closed on Tuesday, October 27, following more than six weeks of subscriptions from retail and institutional investors in Nigeria and other markets. The refinery had initially targeted approximately ₦2.15 trillion, or $1.6 billion, through the sale of 4.1 billion ordinary shares at ₦525 each.
Reuters reported, citing two people familiar with the matter, that orders had reached about ₦6.4 trillion, equivalent to $4.78 billion, before the close. More than two million investors had subscribed through digital channels, while additional applications from other African countries could affect the final total. The figures are based on sources familiar with the offer and are not yet the final confirmed allotment results.
Aliko Dangote, president and chief executive of Dangote Industries, said investors from all 54 African countries and 120 countries worldwide had participated in the offering. The share sale was designed to broaden public ownership of the refinery, with a minimum subscription of 10 shares costing ₦5,250.
Allotment and listing next
With the subscription period over, the offer has entered the post-offer processing and regulatory approval stage. According to the refinery’s published timetable, the collation of subscription returns is scheduled for November 3, while the proposed basis of allotment is to be submitted to the Securities and Exchange Commission on November 10.
The regulator’s no-objection to the allotment is scheduled for November 17, subject to the timetable and any revisions. The refinery has indicated that allotment results, refund information and the listing date will be announced through its official investor channels after the required approvals.
The company has cautioned applicants that payment confirmations do not guarantee the number of shares they will receive. Where demand exceeds the shares available, investors may receive partial allotments, with surplus application funds refunded under the approved process. Shares cannot be traded or transferred before the official listing.
A major test for Nigeria’s capital market
The offering is widely viewed as a significant test of public participation in Nigeria’s capital market, particularly through digital investment platforms and cross-border access for African investors.
The refinery, located in the Lekki area of Lagos State, has a stated processing capacity of about 650,000 barrels of crude oil per day. It began commercial operations in 2024 and has since expanded its role in Nigeria’s fuel supply and exports of refined petroleum products. The company has outlined plans to increase capacity further.
The strong reported demand could also allow the company to exercise an over-allotment option, potentially increasing the total size of the offer to about $2.1 billion, subject to the applicable terms and approvals.
However, the final number of shares allotted, the proceeds raised and the eventual market valuation will depend on the completed reconciliation of applications and the approved allotment process.
The closure marks the end of the subscription phase, but the next stages will determine how the offering translates into actual share ownership and trading on the Nigerian Exchange.
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