Overview
- Dangote Petroleum set the offer at 4.1 billion shares at ₦525 each, a sale that could raise about ₦2.15 trillion ($1.5–$1.6 billion) with order books due to open on September 14.
- Company officials say net proceeds will be used to finance a plan to double the Lagos refinery from roughly 650,000 barrels per day to about 1.4 million barrels per day and to advance projects such as a planned 700,000 bpd refinery in Lamu, Kenya.
- The IPO follows a $2.5 billion private placement in July that market reports say valued the refinery near $40 billion and was oversubscribed, and the public offer includes a 15% greenshoe option to sell extra shares if demand is strong.
- Analysts and coverage flag key risks including the technical and cost challenges of a major capacity build-out, crude-price and naira volatility, and regulatory scrutiny after Nigeria’s SEC intervened in June over marketing before approving the offer documents.
- If fully subscribed, the listing will test the depth of Nigeria’s capital markets by drawing pension funds, institutions and retail investors and could materially alter the Nigerian Exchange’s market composition while increasing local availability of refined fuels.