Dangote Targets $50bn Valuation Ahead of Refinery IPO

Dangote Refinery is targeting a valuation of about $50 billion ahead of its planned Initial Public Offering (IPO) in Nigeria later this year, according to a Bloomberg report citing people familiar with the matter.

The company is expected to offer up to 10 per cent of its shares to investors, potentially raising around $5 billion in what could become one of the largest capital market transactions in Nigeria’s history.

A senior executive within the Dangote Group reportedly confirmed that the valuation reflects the company’s internal projections but declined to provide details on the final structure or timing of the listing.

The planned IPO comes as the refinery strengthens its position in Nigeria’s downstream oil sector following the start of large-scale production of petrol, diesel and aviation fuel.

Located in the Lekki Free Zone in Lagos, the facility has a refining capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery and one of the biggest refining complexes globally.

Since ramping up operations, the refinery has reduced Nigeria’s reliance on imported petroleum products and altered fuel supply patterns within the country.

The company has appointed three financial advisers to coordinate different parts of the offering process.

Stanbic IBTC Capital will oversee international book-building and engagement with foreign portfolio investors under the Standard Bank network, while Vetiva Capital Management will manage retail distribution within Nigeria.

FirstCap will focus on placements with Nigerian institutional investors, particularly pension funds.

The refinery’s proposed dividend structure is also expected to attract investor interest, as shareholders would buy shares in naira while receiving returns in US dollars.

The arrangement is expected to be backed by an estimated $6.4 billion in annual petrochemical export earnings. Sources familiar with the transaction said the prospectus has already been submitted for regulatory review, with a subscription window expected to open by August 2026.

The planned listing would mark the first time members of the public can directly own shares in the refinery business. Commissioned in May 2023 after almost a decade of construction, the refinery was developed at an estimated cost of about $20 billion.

By February 2026, the facility had reportedly reached full processing capacity of 650,000 barrels per day, strengthening expectations that it could become a major exporter of refined petroleum products across Africa and beyond.