Dangote Petroleum Refinery has attracted approximately N5.85tn in share applications, almost three times its initial fundraising target, as investors seek ownership stakes in the Lagos-based oil refining company.
The offering, which is among Africa’s largest public share sales, has drawn interest from Nigerian investors and other buyers across the continent.
According to Bloomberg, the refinery initially sought to raise at least $1.6bn but received applications valued at about $4.1bn.
Nigerian investors show strong interest
Sources familiar with the transaction disclosed that Nigerian investors accounted for approximately $1.9bn in investment interest.
Prospective international investors submitted applications valued at another $2.1bn.
The demand has exceeded the number of shares initially offered, prompting consideration of an expanded allocation.
Bloomberg reported that applications had been received from investors across all 54 African countries.
The Public Investment Corporation of South Africa was also identified among major institutional investors seeking an allocation.
Dangote considers additional share allocation
The refinery is reportedly considering an additional 30 per cent share allotment to accommodate the high level of investor interest.
The arrangement could increase the amount raised through the offering to approximately $2.1bn.
However, the final amount will depend on the allocation process and approval from the relevant market regulator.
The Securities and Exchange Commission is expected to review the company’s proposed share allotment.
Regulatory approval would determine how much of the demand can be converted into actual investments.
Refinery prepares for stock market trading
The company is expected to submit its draft allotment announcement to regulators as the listing process progresses.
According to the report, November 17 has been identified as a possible date for approval of the share distribution.
Trading is expected to commence after the regulatory and allotment procedures have been completed.
Although the refinery is reportedly targeting an earlier listing, its final trading date remains subject to regulatory approval.
IPO attracts continental attention
The Dangote refinery, located in Lekki, Lagos State, has a processing capacity of approximately 700,000 barrels of crude oil daily.
The facility is a central component of Nigeria’s efforts to strengthen domestic petroleum refining and reduce dependence on imported fuel.
The public offering is expected to broaden the refinery’s ownership and strengthen participation in African capital markets.
However, the N5.85tn figure represents the value of share applications, not the amount already collected and permanently allocated to investors.
The final capital raised will depend on completed subscriptions, share allotment and regulatory clearance.
