Nigeria’s Dangote Petroleum Refinery is seeking to raise approximately $1 billion through a private placement as the company prepares for expansion and a possible future public listing, according to market sources and investment documents.
The fundraising exercise values the 650,000 barrels-per-day refinery at about $39.1 billion, with the company offering three billion ordinary shares at $0.35 per share.
Investor interest has reportedly exceeded $2 billion, indicating strong demand for exposure to Africa’s largest oil refining facility.
According to a report from Reuters, under the proposed placement, investors are required to subscribe to a minimum of one million shares valued at about $350,000, with additional subscriptions available in multiples of 500,000 shares. The shares will be subject to a 365-day lock-up period.
The proceeds from the capital raise will be directed toward expansion projects and general corporate purposes as the refinery continues to increase production capacity and strengthen its position in regional energy markets.
The Dangote refinery, which began operations in 2024, has expanded production of key petroleum products including diesel, aviation fuel, naphtha and petrol. The facility is expected to reduce Nigeria’s dependence on imported refined petroleum products and reshape the country’s downstream oil sector.
Industry analysts said additional investment is likely to focus on logistics, storage, distribution infrastructure and potential expansion into petrochemicals, according to details contained in the placement document.
The planned capital raise could also serve as a major step towards a future listing on the stock exchange, a move previously indicated by billionaire industrialist Aliko Dangote.
A successful listing would create one of Africa’s largest publicly traded energy companies and provide investors with direct access to Nigeria’s growing refining and petrochemical market.
Dangote officials had not issued a public statement on the private placement at the time of publication.
