In Nigeria, the Dangote Oil Refinery has taken another major step toward its planned stock market listing. On Monday, the company signed the official documents with its advisers and other parties involved in the operation.
If completed as planned, the listing could become the largest ever carried out in Africa. The share offer is scheduled to run from September 14 to October 13. The company plans to offer 4.1 billion shares at a price of 525 naira per share.
Should all the shares be sold, the operation could raise around 2.15 trillion naira, equivalent to nearly 1.6 billion US dollars. In addition, if demand is particularly strong, the refinery could offer up to 30 percent more shares, subject to regulatory approval.
This stock market debout will be a major test for both the refinery and Nigeria’s financial market. Built near Lagos at a cost of around 20 billion dollars, the Dangote refinery currently has the capacity to process up to 700,000 barrels of crude oil per day.
Since becoming operational, the refinery has significantly transformed Nigeria’s fuel market, allowing the country to reduce its dependence on imported petroleum products. It also exports some of its products, including kerosene, to several African countries and to Europe.
Aiming to double its capacity
Looking ahead, the stock market listing is expected to help finance the refinery’s expansion. The company aims to double its capacity to 1.4 million barrels per day. It has already secured a 400-million-dollar investment commitment.
The refinery is owned by Nigerian businessman Aliko Dangote, widely regarded as Africa’s richest man. His business empire operates across several sectors, including cement and sugar. Speaking at the signing ceremony, Aliko Dangote said he hopes to turn the facility into the largest oil refinery in the world.
