The upcoming initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE will involve the issuance of 4.1 billion shares at an indicative price range of ₦500 to ₦595 ($0.38 to $0.45) per share, according to deal sources cited by Reuters.
The pricing structure targets a net capital raise of $1.55 billion to $1.80 billion, with a mid-point valuation based on ₦525 per share raising approximately $1.5 billion.
The offer includes a 15% over-allotment (green shoe) option to accommodate excess demand from institutional investors, domestic pension funds, and regional African buyers.
The order book is scheduled to open formally on September 14, 2026. Primary proceeds are earmarked to fund the expansion of the Lagos mega-refinery from its current 700,000 bpd operational baseline to 1.4 million bpd.
Valuation Takeaways
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Tranche Size: While total capital needs for long-term expansion and regional development (including the Lamu, Kenya facility) are projected near $5 billion, this $1.55B–$1.80B primary public tranche allows the issuer to price shares at a level accessible to domestic institutional and retail investors without overwhelming single-day NGX liquidity.
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Green Shoe Flexibility: Including a 15% green shoe option enables bookrunners to manage post-listing price stabilization and capture oversubscription from regional African pension funds (such as Kenyan institutional allocations).
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NGX Weighting Impact: Upon successful completion and listing, the new equity float will immediately rank among the largest single-stock weightings on the Nigerian Exchange (NGX), positioning it to capture significant passive capital flows in subsequent Nigeria equity indices such as FTSE Russell Frontier Market Index.
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