In a significant update from Washington DC, Aliko Dangote has confirmed that the Dangote Petroleum Refinery & Petrochemicals will offer approximately 10% of its equity in an upcoming Initial Public Offering (IPO).
This multi-exchange listing is designed to be a “Pan-African” event, providing a vehicle for investors across the continent to participate in what analysts value as a $40–$50 billion asset.
Most notably for investors, the billionaire confirmed that the refinery will pay dividends in US dollars, Dangote said in a brief interview in Washington on Thursday, a rare and highly attractive feature for Nigerian and frontier market portfolios currently seeking a hedge against currency volatility.
“We will list as much as possible, maybe 10% or so,” Dangote said. He didn’t disclose financial details.
The company has appointed Stanbic IBTC Capital Ltd., Vetiva Advisory Services Ltd. and FirstCap Ltd. to advise on the IPO.
IPO Structure and Dollar Dividend Policy
The decision to pay dividends in dollars is underpinned by the refinery’s massive export revenue potential, estimated at $6.4 billion annually from gasoline, diesel, and petrochemical exports to Europe and East Africa.
| Component | Details |
| Stake to be Sold | ~10% of total equity. |
| Primary Listing | Nigerian Exchange (NGX) Main Board. |
| Secondary Listings | Potential cross-listing on the Nairobi and Johannesburg exchanges. |
| Dividend Currency | US Dollars (supported by export earnings). |
| Advisor Trio | Stanbic IBTC Capital, Vetiva Advisory, and FirstCap. |
Source: Aliko Dangote
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Retail Choice: Early reports suggest the IPO may include an innovative structure allowing retail investors to subscribe in Naira while opting to receive future dividends in Dollars.
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Market Impact: A 10% listing at a $50 billion valuation would represent a $5 billion capital raise, potentially making it the largest IPO in African history.
The share sale is part of Dangote’s plan to invest $40 billion to fund a growth drive over the next five years that includes quadrupling fertilizer output and more than doubling oil refinery capacity. The billionaire on Thursday said he also plans to build potash and phosphate soil-nutrient plants in the Democratic Republic of Congo and refine copper in Zambia.
“We have a very ambitious program across all our businesses,” Dangote said during an event organized by the Atlantic Council in Washington. “We’re looking at areas where we have lack of investment in Africa, in infrastructure.”
His 650,000 barrel-a-day facility, the continent’s biggest, reached full capacity just a couple of weeks before the conflict in the Middle East created a historic oil-supply disruption, spurring demand for petroleum products from the facility from Africa and beyond.
The refinery is also becoming an increasingly important source of vital jet fuel supplies to Europe.
The refinery has exported a total of about 79,500 barrels a day of diesel this month compared with about 73,600 a day in March, according to the company. Gasoline shipments are 50,100 barrels a day from nearly 102,400 a day last month.
Dangote’s assets are valued at $32.8 billion, according to the Bloomberg Billionaires Index, making him Africa’s richest person.
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