Dangote Group is planning a public offering that could raise around $5 billion through the listing of its petroleum refinery in Nigeria, with a potential secondary listing on the Johannesburg Stock Exchange (JSE) to follow — a transaction that could rank among the largest initial public offerings in African history.
The JSE, the continent's biggest bourse, confirmed it is in discussions with Dangote Group and indicated that the company intends to list first on the Nigerian Exchange before pursuing a secondary listing in South Africa.
"They will list first in Nigeria, but there is a strong intention to subsequently bring the listing to South Africa as well," a JSE spokesperson told Reuters.
With a market capitalisation of approximately $1.52 billion, the JSE accounts for roughly 60% of the total value of African equity markets, underpinning its position as the continent's leading stock exchange.
Dangote Group has reportedly submitted a preliminary application to Nigeria's capital markets regulator and is targeting an exchange debut in October. Sources close to the process say the company aims to raise around $5 billion through the initial public offering of Dangote Petroleum Refinery.
Investor appetite extends well beyond Nigeria's borders. Kenya is expected to play a meaningful role in the transaction, with institutional investors — including pension funds — potentially committing up to $500 million, equivalent to approximately 10% of the total amount the company is seeking to raise.
Contacts have also been made with regulators and market participants in Egypt, Ghana and Rwanda to facilitate participation by investors from those countries, underscoring the broad continental interest in the refinery.
Built by Nigerian billionaire Aliko Dangote, widely regarded as Africa's wealthiest individual, the refinery represents an estimated investment of $20 billion. With a processing capacity of 650,000 barrels of crude oil per day, it began fuel production in 2024 and reached full operational capacity earlier this year. The Nigerian National Petroleum Company holds a stake of just over 7% in the facility.
A recent private placement valued the infrastructure at approximately $40 billion, after investors acquired a 6% stake for $2.5 billion. That valuation places the refinery among the most valuable privately held industrial assets on the continent and sets the stage for what could be the largest stock market listing ever conducted in Africa.
Source: Mercado / Original article: https://mercado.co.ao/dangote-prepara-opv-de-5-mil-milhoes-de-dolares-e-admite-dupla-cotacao-na-africa-do-sul/
