Aliko Dangote, President and Chief Executive Officer of Dangote Group, has announced that the initial public offering (IPO) of the Dangote Refinery will open within the next 10 to 12 days.
Dangote disclosed the timeline on Thursday while speaking to investors and analysts during a visit to Botswana, according to Reuters.
Key Highlights
- Dangote says the Dangote Refinery IPO will open within 10 to 12 days.
- The Pan-African IPO is expected to offer at least 10 per cent of the refinery business.
- Proceeds will support the company’s ambitious $40 billion expansion plans.
- Dangote plans to double the refinery’s capacity to 1.4 million barrels per day.
- Dangote Cement is expected to pursue a secondary listing on the London Stock Exchange in October.
- Dangote also announced plans to launch a new refinery project in Kenya on September 30.
The Dangote Refinery had previously announced plans for a Pan-African IPO that would offer at least 10 per cent of its refining business as part of efforts to fund its expansion programme.
The company is targeting an estimated $40 billion expansion drive, with plans to significantly increase its refining capacity.
On August 18, the refinery announced that it had completed a $1 billion underwriting programme ahead of the planned IPO.
Dangote Refinery Targets 1.4 Million BPD Capacity
Speaking about the refinery’s expansion plans, Dangote said the company intends to double its production capacity.
He said the expansion would increase the refinery’s capacity from its current 650,000 barrels per day to approximately 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 planned expansion would further strengthen the refinery’s position in Nigeria’s petroleum industry and increase its potential role in supplying refined products to domestic and international markets.
Dangote Cement Eyes London Listing
Dangote also disclosed that Dangote Cement, another major company within the Dangote Group, is expected to pursue a secondary listing on the London Stock Exchange (LSE).
According to Dangote, the listing will most likely take place in October.
Dangote Cement is scheduled to hold a capital markets day in London on September 21 as part of preparations for the proposed secondary listing.
Read also:
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- Dangote Refinery Moves Closer To Historic Stock Market Listing After Filing IPO Application
- Dangote Refinery IPO: Investors Required to Commit $350,000 Minimum as NGX Courts Middle East Capital
Dangote Plans New Refinery in Kenya
The businessman also announced plans to launch construction of a new refinery on Kenya’s coast on September 30, in partnership with governments in East Africa.
“We are launching it on September 30,” Dangote said.
The planned refinery is expected to replicate the model of the Nigerian facility, which has a stated capacity of 650,000 barrels per day.
Dangote has previously said the East African refinery project would be developed with support from governments in the region.
The proposed projects form part of Dangote’s broader strategy to expand his energy and industrial investments across Africa.
