Lead image for Dangote refinery set for Africa's biggest IPO, aims to raise Sh646bn.
Nigeria's Dangote oil refinery is set for Africa's biggest ever market listing as it seeks to raise about $5 billion (about Sh646 billion) through an initial public offering expected to conclude in October, a source with knowledge of the plan told Reuters.
Majority owned by Africa's richest man, Aliko Dangote, the refinery emerged as a big winner from the Iran war by selling jet fuel across Africa and to western Europe as countries battled shortages.
Dangote now plans to raise funds to expand the capacity of the 650,000-barrel-per-day Lagos-based refinery and replicate its success with a similar facility in Kenya.
His ambition is to reduce Africa's dependence on expensive, imported fuels and even turn the continent into an exporter.
The planned IPO, whose proposed timeline is fairly tight according to the source, has attracted interest across the continent. Stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have held a series of meetings with the refinery's advisers in recent months to take part in the deal.
Kenya's capital markets could raise as much as $500 million of the Dangote IPO target, the source said, adding that there is "tremendous" appetite for the issue among local investors such as pension funds.
A second source with direct knowledge of the deal said Dangote Petroleum Refinery & Petrochemicals FZE, which has submitted its IPO application to Nigeria's Securities and Exchange Commission, is expected to receive approval in the coming weeks and be able to publish a prospectus in September.
The first source said the IPO's target was $5 billion but cautioned that the final figure would depend on what the Nigerian regulator approved as the primary listing will be on the Nigerian Stock Exchange.