Nigeria’s Dangote Refinery is getting ready for a stock market debut that may become one of Africa’s largest share offerings ever. The company wants new money to fund an expansion.
The refinery, owned by Nigerian billionaire Aliko Dangote is expected to raise about $1.6 billion through a public offering. The Securities and Exchange Commission of Nigeria has approved the sale of 4.1 billion shares.
Money from the offering is expected to help the refinery double its production capacity. The refinery will grow from 650,000 barrels per day to 1.4 million barrels per day.
The refinery is in Lekki, Lagos. It was built for $20 billion and reached full capacity earlier this year. The refinery has become a supplier of refined petroleum to Nigeria and to markets abroad.
The IPO order book will open on September 14. The formal listing documents are planned to be signed on Monday.
Beyond raising money the listing could spread ownership of one of Africa’s important industrial projects. More investors could join the refinery’s growth.
If the expansion goes ahead as planned the refinery will be one of the oil refineries, in the world.
