Aliko Dangote has disclosed that the initial public offering of the Dangote Refinery will open within the next 10 to 12 days, with the offering expected to raise about $5bn.
Dangote disclosed this on Thursday while speaking to investors and analysts during a visit to Botswana, according to Reuters.
The proposed IPO could become the largest public offering in Africa if the refinery raises the targeted $5bn.
The planned listing comes months after the refinery raised $2.5bn through a private placement, strengthening its balance sheet ahead of the IPO and its next phase of expansion.
Dangote said the company plans to double the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day.
“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,” he said.
The Dangote Refinery reached its full nameplate capacity of 650,000 barrels per day in February and has since tested production at about 700,000 barrels per day.
The expansion is expected to further increase the refinery’s ability to supply petrol, diesel, aviation fuel and other refined petroleum products to Nigeria, other African markets and international buyers.
The refinery has benefited from stronger refining margins amid disruptions in the global oil market, particularly as tensions in the Middle East have increased demand for alternative sources of refined fuel.
According to an earlier Information Memorandum, the refinery is valued at about $39.1bn.
The company has prioritised a Nigerian IPO rather than an immediate overseas listing. Dangote Refinery Chief Executive Officer, David Bird, previously said the company would not pursue a foreign stock market listing for at least three years.
Bird said the refinery wants to establish a stronger operating and financial track record before seeking access to international capital markets.
Meanwhile, Dangote also disclosed that Dangote Cement Plc’s secondary listing on the London Stock Exchange is expected to take place in October.
The proposed listing is expected to broaden the cement company’s access to international investors and increase its exposure to global capital markets.
Dangote Cement is already listed on the Nigerian Exchange and is one of the flagship companies of the Dangote Group.
Dangote also announced plans to commence construction of a new refinery in Kenya in partnership with East African governments.
He said the project would be launched on September 30 and could take up to three years to complete.
The proposed refinery is expected to supply refined petroleum products to Kenya and neighbouring countries, helping to reduce the region’s dependence on imported refined fuels.
Dangote said the Kenyan project would be the group’s largest refining investment outside Nigeria.
