Dangote Refinery Begins SEC Approval Process for Landmark IPO

By Adedapo Adesanya

Dangote Petroleum Refinery has formally approached Nigeria’s Securities and Exchange Commission (SEC) to begin the regulatory process for its planned initial public offering (IPO), paving the way for what could become Africa’s largest stock market listing, according to a report by BusinessDay.

The newspaper reported that the refinery’s advisers are already working with company officials and the SEC to process the application, with the regulator expressing confidence that there are no obstacles likely to delay the transaction.

Speaking in an interview with BusinessDay, the Director-General of the SEC, Mr Emomotimi Agama, said the commission stands ready to address any issues that may arise during the approval process.

“If any issue arises, SEC will resolve it. That is why the SEC exists,” Mr Agama was quoted to have said.

Although no official listing date has been approved, the refinery is still targeting a September debut on the Nigerian Exchange (NGX) Limited. There are also plans for a multi-African bourse listing.

The planned IPO is expected to rank among the largest equity offerings ever seen in Africa and would mark one of the most significant additions to Nigeria’s capital market in recent years.

The listing also aligns with ongoing efforts by regulators to encourage major privately owned companies to go public and deepen the country’s equity market.

The application comes after several months of preparatory engagements involving Dangote Refinery, its advisers and the SEC.

Mr Agama noted that the company’s early engagement with the regulator has helped streamline the approval process, adding that the commission intends to encourage similar collaboration for future listings.

Meanwhile, the SEC has concluded investigations into the unauthorised promotion of the refinery’s proposed IPO by some market participants before regulatory approval had been obtained.

According to Mr Agama, sanctions are being imposed on those found to have breached the rules, although he declined to identify the affected entities.

This comes after the company raised about $2.5 billion has been raised by from its private equity placement.

The exercise attracted broad participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, strategic partners, and individual investors.

Notable participants included the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), reflecting deep and diversified confidence in DPRP’s long-term prospects.

The transaction is believed to be Africa’s largest publicly disclosed primary equity private placement, marking a significant milestone in the history of the organisation and demonstrating strong investor confidence in the refinery’s long-term growth strategy, including raising its current capacity from 700,000 barrels per day to 1.4 million barrels per day.