Dangote Petroleum Refinery and Petrochemicals FZE has closed its private placement, which ran from June 1 to June 10, targeting $1.05 billion at a valuation of $39.1 billion.
The refinery offered 3 billion new ordinary shares at $0.35 per share, according to an Information Memorandum. Demand for the placement significantly exceeded $2 billion, people familiar with the transaction said, indicating strong interest from high-net-worth and institutional investors
The $39.1 billion valuation cements Dangote Refinery’s position as one of the most valuable privately held industrial assets in Africa. It substantially exceeds the market capitalisation of nearly all companies listed on the Nigerian Exchange, outside of the largest banking and energy names.
The world’s largest single-train refinery, with a nameplate capacity of 650,000 barrels per day, recently processed 700,000 bpd during performance testing. The facility has been producing diesel, aviation fuel, naphtha, and premium motor spirit (PMS) since commencing operations in 2024, helping reduce Nigeria’s reliance on imported refined products and opening new export opportunities across West Africa.
Proceeds from the capital raise will fund expansion projects, logistics and storage infrastructure, enhanced distribution capabilities, and general corporate purposes. Investors are subject to a 365-day lock-up period. The minimum subscription was 1 million shares ($350,000), with subsequent subscriptions accepted in multiples of 500,000 shares.
Vetiva Capital Management Limited and FirstCap acted as issuing houses on the transaction.
The private placement is seen as a key step toward a potential public listing. Aliko Dangote has previously expressed intentions to list the refinery, possibly on multiple African exchanges including the Nigerian Exchange (NGX), although no timeline was specified in the memorandum. Market observers view the transaction as preparatory groundwork to broaden the shareholder base ahead of any IPO.
The strong demand reflects investor confidence in the refinery’s strategic role in Nigeria’s energy sector, its foreign exchange earnings potential, and longer-term plans to expand capacity to 1.4 million barrels per day by 2028.
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