The forthcoming Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE (DPRP) is expected to be the most significant public offering in Nigeria’s capital market this year, with analysts projecting that billionaire industrialist Aliko Dangote could raise more than N4 trillion when the offer opens in the last quarter of 2026.
Market analysts and capital market operators expect the refinery to offer between three billion and ten billion ordinary shares, with the share price anticipated to be no less than N500 per share. Industry observers believe the offer is likely to be heavily oversubscribed, reflecting strong investor confidence and the growing depth of Nigeria’s capital market.
Although the company has yet to announce the final offer price and the exact number of shares to be issued, a recent pre-IPO private placement valued shares at US$0.35 each, placing the refinery’s enterprise value at an estimated US$39 billion to US$40 billion. Earlier public statements by Aliko Dangote indicated that between 5% and 10% of the company’s shares would be offered to investors through the IPO.
The optimism surrounding the public offer follows the company’s successful US$2.5 billion private placement, which was oversubscribed by approximately 400%. The transaction is regarded as Africa’s largest publicly disclosed primary equity private placement and forms part of the refinery’s long-term financing strategy.
Proceeds from both the private placement and the planned IPO will finance Dangote Refinery’s expansion across Africa. The company is currently expanding the capacity of its 640,000-barrel-per-day refinery in Lagos while simultaneously developing a new 700,000-barrel-per-day refinery in Lamu, Kenya.
The proposed US$17 billion Kenyan refinery will be located near the Port of Lamu and is expected to serve as a strategic petroleum hub supplying refined products to Kenya and neighbouring East African countries, including Uganda, Rwanda, South Sudan, Burundi and the Democratic Republic of Congo.
Like the private placement, the IPO is expected to attract both domestic and international institutional investors, sovereign wealth funds, development finance institutions and retail investors.
The company is also planning to pursue dual international listings on stock exchanges in Nigeria, London and New York next year, a move that would make it the first Nigerian company to achieve such a multi-market listing.
Analysts say the refinery’s rapid growth has strengthened Nigeria’s domestic refining capacity, helping to reduce dependence on imported petroleum products and improving the country’s energy security amid recent volatility in global oil markets.
Market experts also expect strong demand for the IPO if the shares are priced below N500, with many predicting significant appreciation in value once the stock begins trading on the secondary market.
The anticipated listing comes at a time when Nigeria’s capital market continues to witness increased investor participation. Between March 2024 and March 2026, Nigerian banks collectively raised about N4.65 trillion in fresh capital through recapitalisation exercises, underscoring growing confidence in the country’s financial markets.
The Dangote Refinery IPO is expected to rank among the largest equity offerings in Africa and further cement the refinery’s position as one of the continent’s most valuable industrial assets while supporting its ambition to become a leading supplier of refined petroleum products across Africa.
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