Aliko Dangote, President and Chief Executive Officer of Dangote Group, says the initial public offering (IPO) of the Dangote Petroleum Refinery will open within the next 10 to 12 days.
Gatekeepers News reports that Dangote disclosed this on Thursday while speaking to investors and analysts during his visit to Botswana, according to Reuters.
The planned IPO is expected to be one of the largest public share offerings in Africa. The refinery had earlier filed plans for a potential $5 billion offering, although the final size of the deal is yet to be determined.
The planned share sale is part of Dangote Group’s strategy to raise funds for a major expansion of the refinery. Dangote said the company wants to more than double its current capacity of 650,000 barrels per day to about 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,” Dangote said.
The refinery, located in the Lekki area of Lagos, reached its full nameplate capacity of 650,000 barrels per day in February and has reportedly tested production of about 700,000 barrels per day.
The IPO preparations received a boost in August when the refinery secured a $1 billion underwriting programme. The arrangement included $600 million for a completed private placement and another $400 million commitment to support the planned public offering.
Meanwhile, reports indicate that September 14 is emerging as the likely date for the opening of the IPO order book, although Dangote Refinery has not officially confirmed the date. Some reports also say the proposed shares could be priced at ₦525 each, with the company targeting about $1.5 billion from the initial offer.
Dangote also disclosed plans for a new refinery on Kenya’s coast in partnership with East African governments. He said the project would be launched on September 30 and is expected to take about three years to complete.
In addition, he said the secondary listing of Dangote Cement on the London Stock Exchange is likely to take place in October.
