The Dangote Petroleum Refinery has announced the closure of its initial public offering, saying investors from 120 countries participated in the share sale, described as Africa’s largest IPO.
The Lagos-based refinery, owned by Nigerian industrialist Aliko Dangote, had initially scheduled the offering to close on October 13, but extended the deadline by two weeks to give more African investors an opportunity to participate.
The company has not disclosed the total amount raised through the offering. Its initial fundraising target was $1.6bn, although Dangote said earlier in October that investor interest had exceeded the target by more than three to four times.
In a statement issued late Tuesday, Dangote described the outcome as a historic milestone for Africa, saying it demonstrated the potential of investment in the continent’s industrial future.
The company said applications were received from investors across all 54 African countries and five other continents, reflecting broad international interest in the refinery.
Dangote said the participation demonstrated confidence in the business and offered investors across the world an opportunity to own stakes in a major African industrial enterprise.
The refinery currently has a production capacity of 700,000 barrels per day and plans to increase output to 1.4 million barrels per day. If achieved, the expansion could make it the world’s largest refinery, surpassing India’s Jamnagar refinery.
In July, the company secured $2.5bn in investments from private investors.
The refinery has also expanded its ambitions beyond Nigeria. Last month, it commenced work on a proposed $16bn refinery project on Kenya’s Lamu Island, which is expected to have a capacity of 700,000 barrels per day.
The developments come as Africa continues to rely heavily on imported refined petroleum products. According to an April report by the Africa Finance Corporation, the continent imports more than 70 per cent of its refined fuel requirements.
Source: Vanguard
