Dangote Refinery seeks $1 billion private placement ahead of planned listing

Nigeria’s Dangote Petroleum Refinery is seeking to raise about $1 billion through a private placement, valuing the company at approximately $39.1 billion, according to sources and a placement document.

The refinery is offering 3 billion ordinary shares at $0.35 per share, with investor demand already exceeding $2 billion, sources said.

According to Reuters report, investors must subscribe to a ⁠minimum of 1 million shares ($350,000), with additional purchases in multiples of 500,000 shares. Shares will be subject to a 365-day lock-up period.

Proceeds will be used for expansion and general corporate purposes as the refinery ramps up operations and strengthens its market position, the document showed.

The 650,000 barrels-per-day refinery, which ⁠began production in 2024, has expanded output across diesel, aviation fuel, naphtha and petrol, significantly reducing Nigeria’s reliance on imported refined products.

The fundraising could pave the way for ⁠a future public listing, which billionaire owner Aliko Dangote has previously signaled could happen later this year.

Dangote officials did not respond ⁠to a request for comment on the placement.

Market participants expect further investments in logistics, storage and distribution infrastructure, ⁠alongside possible expansion into petrochemicals, according to the placement document.