Dangote Petroleum Refinery will not pursue a foreign stock market listing for at least three years after its planned Nigerian IPO, as the company prioritises domestic investor participation and seeks to establish a longer track record of production and financial performance.
Chief Executive Officer of Dangote Petroleum Refinery, David Bird, disclosed the position in an interview with Reuters, saying the company wants to demonstrate sustained operational and financial performance before approaching international capital markets.
The decision comes as Dangote Refinery prepares for a planned initial public offering (IPO) in Nigeria that could raise about $5 billion and become the largest stock market listing in African history.
The company has submitted an IPO application to Nigeria’s Securities and Exchange Commission (SEC), although the final size and structure of the offer remain subject to regulatory approval. The transaction is expected to be completed in October, according to Reuters.
Bird said the immediate priority is to make the Nigerian offering accessible to ordinary Nigerians and domestic investors.
“We really want to drive participation,” Bird told Reuters, describing the transaction as intended to be “the people’s IPO.”
The decision effectively puts earlier expectations of a near-term international listing on hold. London has been mentioned as a possible destination for a future foreign listing, but Bird said Dangote Refinery wants at least three years of proven production and financial results before making that move.
$5 billion Nigerian IPO could be Africa’s Biggest Ever
Dangote Refinery is targeting approximately $5 billion from its Nigerian IPO, a transaction that could become Africa’s largest-ever stock market listing.
The refinery plans to use proceeds from the offering to expand its Lagos operations and support its broader African expansion strategy.
The company is targeting an increase in refining capacity from its current 650,000 barrels per day to 1.4 million barrels per day within three years.
The expansion would further strengthen Dangote Refinery’s position as a major supplier of refined petroleum products in Africa and increase its capacity to export into international markets.
The IPO comes shortly after the company completed a $2.5 billion private placement. The transaction involved a 6% stake and valued the refinery at approximately $40 billion which was reportedly 3.7 times oversubscribed.
