Dangote Refinery IPO to Open Within 12 Days

By Adedapo Adesanya

Mr Aliko Dangote, the President and chief executive of Dangote Industries Limited, has said the initial public offering (IPO) of the Dangote Petroleum Refinery will open within the next 12 days.

Mr Dangote disclosed this on Thursday while speaking to investors and analysts in Botswana, according to Reuters.

The planned IPO, which is expected to raise about $5 billion, could become the largest public offering in Africa.

“So, our dream is that we want to make sure we double the capacity of the refinery, which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” Mr Dangote said.

The initial 650,000 barrels-per-day refinery reached full nameplate capacity in February and has subsequently tested production at about 700,000 barrels per day.

Mr Dangote said the company plans to double the refinery’s capacity to 1.4 million barrels per day as it seeks to strengthen its position as a major supplier of refined petroleum products to African and international markets.

The IPO follows a $2.5 billion private placement secured by the refinery, while the company also recently announced a $1 billion underwriting programme ahead of the planned public offering.

Mr Dangote also disclosed plans for a secondary listing of Dangote Cement Plc on the London Stock Exchange, expected in October, as the group seeks to broaden access to international investors.

He further announced plans to commence construction of a new refinery on Kenya’s coast on September 30.

“We are launching it on September 30,” he said. It would mark Dangote Group’s biggest refining investment outside Nigeria.

The project, to be developed in partnership with East African governments, is expected to take up to three years to complete and supply refined petroleum products to Kenya and neighbouring countries.