Aliko Dangote: Refinery Public Offering Imminent, Set for Next Fortnight

Nigeria's foremost industrialist, Aliko Dangote, has disclosed that the initial public offering (IPO) for the Dangote refinery is slated to commence within the next ten to twelve days. This announcement was made by the President of Dangote Industries Limited on Thursday while engaging with investors and analysts in Botswana, as reported by Reuters.

The colossal $20 billion refinery, which holds the distinction of being Africa's largest, is projected to secure approximately $5 billion through this IPO. This move has the potential to mark the largest public offering ever witnessed on the African continent. Dangote, expressing his vision, stated, "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."

The Lagos-based facility achieved its full designed operational capacity of 650,000 barrels per day in February this year. Since then, it has even surpassed this benchmark, reaching 700,000 barrels per day during its testing phases.

While Dangote Industries Limited does not typically release the refinery's profit margins, the global refining industry has recently experienced a boost in earnings. This improvement is largely attributed to the instability in the Middle East, compelling buyers to seek alternative sources for refined fuels.

Beyond the impending refinery listing, Mr. Dangote also used his Botswana visit to outline a broader strategic roadmap for his vast industrial empire. Plans include a secondary listing for Dangote Cement on the London Stock Exchange, anticipated around October. This strategic move aims to expose the company to a wider pool of international investors. Furthermore, he confirmed long-discussed plans for expansion beyond Nigeria's borders: a new refinery project on Kenya's coast. This venture, which will involve partnerships with East African governments, is designed to supply refined fuel to Kenya and its neighbouring countries, thereby diminishing the region's reliance on imports. This proposed East African refinery is poised to become the group's most substantial refining undertaking to date.