HomeBusinessDangote lines up advisers for pan-African refinery IPO

Dangote lines up advisers for pan-African refinery IPO

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KEY POINTS


  • Dangote appointed Stanbic IBTC Capital, Vetiva Advisory Services and FirstCap to advise on a pan-African IPO of his refinery
  • Analysts expect the Dangote refinery IPO to open at a valuation of $40 billion to $50 billion, making it Africa’s largest equity offering
  • Investors will buy shares in naira and receive dividends in dollars, drawing on projected annual export revenue of $6.4 billion

Aliko Dangote has appointed Stanbic IBTC Capital, Vetiva Advisory Services and FirstCap to lead a pan-African initial public offering of Dangote Petroleum Refinery and Petrochemicals Fze, in what analysts project will become the largest equity offering in African stock exchange history.

FirstCap chief executive Ukandu Ukandu confirmed the appointments by email, and the head of the Nairobi Securities Exchange also disclosed the listing plans. The Dangote refinery IPO will span multiple African exchanges, with a listing window targeting June or July 2026.

Dangote completed the $20 billion refinery after 11 years of construction, and it currently operates at 650,000 barrels per day on the outskirts of Lagos.

Valuation, stake size and investor structure

Meanwhile, analysts expect the Dangote refinery IPO to carry an opening valuation of between $40 billion and $50 billion, ranking it among the most significant corporate listings in emerging markets in recent years. Dangote plans to sell between five and 10 percent of the refinery while retaining majority control.

Investors will buy shares in naira and receive dividends in dollars, drawing on projected annual export revenue of approximately $6.4 billion. Furthermore, that structure gives international investors exposure to refinery cash flow while limiting their direct currency risk in Nigeria.

Cross-border listings and market position

The Nigerian Exchange Group has already convened the chief executives of five major African exchanges, including the Johannesburg Stock Exchange and the Nairobi Securities Exchange, to develop cross-border listing pathways.

According to Billionaires Africa, the offering comes as the refinery cements a dominant position in Nigeria’s fuel market. The facility currently meets more than 90 percent of Nigeria’s petrol demand and has exported 456,000 tonnes of refined fuel to five African countries. During the decades before the refinery opened, Nigeria spent billions annually in foreign exchange on imported fuel.

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