Dangote Refinery Extends $1.6bn IPO to October 27

Dangote Petroleum Refinery and Petrochemicals has extended the application period for its initial public offering (IPO) by two weeks to October 27, citing strong investor interest across Africa and efforts to widen access to the share sale, Reuters reports.

The company said on Monday that the Securities and Exchange Commission (SEC) had approved the extension. The offer opened on September 14 and was due to close on October 13.

The refinery, owned by Africa’s richest man, Aliko Dangote, is seeking to broaden ownership of its 700,000-barrel-per-day complex. The offer targets up to 10 million retail investors in Nigeria and elsewhere on the continent.

The IPO aims to raise about $1.6 billion, or up to $2.1 billion if an over-allotment option is exercised. The proceeds will help fund the expansion of the Lagos refinery. It is set to be Africa’s largest share sale.

The company said the extension would support market-access initiatives in other African countries, including expanding distribution channels and facilitating cross-border investment.

It added that the extra time would allow prospective investors to complete account-opening procedures, identity verification checks and other regulatory requirements needed to take part in the offer.

According to the prospectus, the share sale was not registered as a public offering outside Nigeria. Investors in other countries must therefore rely on local regulations or use a limited number of eligible online investment platforms.

Reuters noted that the gap between Dangote’s pan-African ambitions and the uneven take-up beyond Nigeria shows how fragmented capital markets continue to hinder cross-border investment across the continent.

The refinery began processing crude in early 2024 and is central to Nigeria’s efforts to cut fuel imports and become a net exporter of refined petroleum products. The offering is seen as a major test of pan-African retail investor appetite for ownership in a large industrial asset.