Africa’s richest businessman, Aliko Dangote, has reportedly concluded a nearly $2.5 billion private share placement for Dangote Petroleum Refinery & Petrochemicals FZE, in what analysts describe as a significant milestone ahead of the company’s anticipated initial public offering (IPO), expected to be the largest in Africa’s history.
According to a Bloomberg report, the transaction involved the sale of up to six per cent equity in the Lagos-based refinery, implying a valuation of about $40 billion for the integrated energy complex.
People familiar with the deal said investor appetite significantly exceeded expectations, with demand reaching approximately $4 billion against the shares offered, highlighting strong institutional confidence in the refinery’s long-term earnings potential and strategic importance to Africa’s energy sector.
The report stated that the fundraising was conducted in phases. An initial tranche of about $2 billion worth of shares was reportedly sold before an additional $500 million was raised, with much of the latter backed by regional institutional investors.
The sources, who requested anonymity because the discussions remain confidential, said the private placement represents a major step toward the refinery’s planned stock market debut.
The reported valuation underscores growing optimism surrounding the 650,000-barrels-per-day Dangote Refinery, which has steadily increased production and expanded fuel supplies across Nigeria and several African markets.
Market participants believe the oversubscription reflects investor confidence in the refinery’s ability to generate strong cash flows by reducing Nigeria’s dependence on imported petroleum products while positioning itself as a major exporter of refined fuels.
