Dangote Petroleum Refinery is preparing for a public share sale that could raise up to $2 billion, with the planned offering expected to rank as the largest initial public offering (IPO) ever undertaken in Africa, according to a Bloomberg report.
The report, published on Thursday, said the refinery intends to launch the IPO in September 2026, with investors already expressing strong interest ahead of the formal offering.
Bloomberg reported that institutional investors have indicated demand approaching $2 billion even before the transaction opens, reflecting growing confidence in the refinery's long-term prospects and the broader Nigerian equities market.
The proposed offering is expected to involve the sale of about 10 per cent of the refinery's equity. Based on current projections, the transaction could value the company at around $40 billion, although some market estimates suggest its valuation could reach as high as $50 billion.
Investor appetite has reportedly extended beyond large financial institutions to include high-net-worth individuals and retail investors seeking exposure to one of Africa's biggest industrial projects.
According to Bloomberg, the refinery's planned market debut is viewed as a significant test of the capacity of African capital markets to absorb transactions of unprecedented size.
The report stated that Dangote Refinery has completed several domestic and international investor engagement sessions, attracting encouraging responses from both local and foreign investors.
"We have successfully completed a number of domestic and international company introduction and market-sounding activities and have been encouraged by the level of interest received from both local and international investors," the company said in a statement cited by Bloomberg.
The company, however, noted that discussions on the final structure of the transaction remain ongoing.
"The group hasn't finalised the size, timing, or structure of the IPO," it said.
The refinery previously gauged investor interest through a private placement. Speaking during an interview on Arise Television in May, President of Dangote Industries Limited, Aliko Dangote, disclosed that the company secured approximately $2 billion in subscriptions despite seeking to raise only $1 billion.
A prospectus reviewed by Bloomberg reportedly placed the refinery's valuation at $39.1 billion during that private fundraising exercise.
Bloomberg also reported that Nigeria's Securities and Exchange Commission temporarily suspended promotional activities linked to the planned listing in June following concerns over aggressive marketing campaigns surrounding the proposed offer. Despite that development, investor interest has reportedly remained strong.
Located in the Lekki Free Trade Zone, the Dangote Petroleum Refinery has emerged as a major refining facility in Africa since commencing operations, helping reshape Nigeria's downstream petroleum market by reducing dependence on imported refined products while expanding exports to regional and international markets.
According to Bloomberg, the refinery is currently producing close to 700,000 barrels of refined products per day, above its nameplate processing capacity of 650,000 barrels per day, making it one of the world's largest single-train refineries.
The report added that improving market conditions have also strengthened the investment case for the offering. Nigeria's benchmark stock index has gained about 58 per cent in dollar terms this year, ranking among the world's best-performing equity markets.
Bloomberg further cited people familiar with the refinery's financial performance as saying the business recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) margins of roughly 23 per cent last year, placing it among the industry's more profitable refining operations.
The report also noted comments by Dangote during a conversation with Norges Bank Investment Management Chief Executive Officer Nicolai Tangen, where he said geopolitical tensions in the Middle East had positively supported earnings across the group's refinery, fertiliser and petrochemical businesses.
Government officials have also welcomed the planned listing, saying wider public participation could broaden wealth creation.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the level of interest generated by the proposed offering extends beyond Nigeria.
"We can see the excitement already about the IPO, not only in Nigeria, but beyond Nigeria," he said.
He added that wider participation by retail investors could strengthen household wealth over time.
"If you get a million people to invest and then they see appreciation over time, they have more disposable income, they have more wealth," the minister said.
If completed as planned, the IPO would provide investors with one of the rare opportunities to acquire equity in one of Africa's largest privately developed industrial assets while establishing a new benchmark for capital raising on the continent.