Dangote Refinery’s $1.6 Billion IPO Draws Nearly Triple Demand
Aliko Dangote’s $1.6 billion initial public offering (IPO) for his petroleum refinery has attracted overwhelming investor interest, with orders reportedly reaching approximately ₦6.4 trillion ($4.78 billion).
The amount represents nearly three times the refinery’s original fundraising target of about ₦2.15 trillion, highlighting strong demand from Nigerian retail and institutional investors.
According to Reuters, citing two people familiar with the transaction, more than two million investors had subscribed through digital channels, with additional applications expected from investors across other African countries.
Dangote said applications had come from investors in 120 countries worldwide, including all 54 African countries.
The development reflects the international attention surrounding the share offer, which was promoted as an opportunity for ordinary Nigerians and other African investors to own a stake in one of the continent’s largest industrial projects.
The minimum subscription was set at 10 shares, costing ₦5,250, making participation accessible to investors with relatively small amounts of capital.
The offer officially closed on Tuesday, October 27, 2026.
The strong demand could lead the refinery to exercise a greenshoe option, allowing it to increase the size of the offering by up to 30 per cent.
If exercised and approved, the additional shares could raise the total fundraising to approximately $2.1 billion.
However, the company had not officially confirmed whether it would exercise the option at the time of the Reuters report.
The IPO involves the sale of 4.1 billion ordinary shares at ₦525 each, with the proceeds expected to support the refinery’s expansion programme.
Built at an estimated cost of $20 billion, the Dangote Petroleum Refinery began commercial operations in early 2024 and has a processing capacity of approximately 700,000 barrels of crude oil per day.
The company plans to increase that capacity to 1.4 million barrels per day by 2029.
The expansion is expected to strengthen its ability to supply refined petroleum products to Nigeria and international markets.
The refinery has also expanded its exports, including shipments of aviation fuel to Europe and other African destinations.
Following the closure of the offer, attention has shifted to the allotment process and the refinery’s planned listing on the Nigerian Exchange (NGX).
According to the refinery’s official announcement, applications will undergo post-offer processing and regulatory approvals before allotment results, refund details and the listing date are confirmed.
The company has also warned investors that payment confirmation does not guarantee the number of shares they will eventually receive.
The nearly threefold demand marks a significant development for Nigeria’s capital market, although the final allocation will determine how many shares successful applicants receive.
The offering also places renewed attention on the role of domestic and African investors in financing major industrial projects across the continent.
