Dangote Petroleum Refinery is seeking to raise about $1 billion through a private placement that values the company at $39.1 billion.
According to an Information Memorandum, the refinery is offering three billion ordinary shares at a placement price of $0.35 per share. The transaction is expected to raise approximately $1 billion and has already attracted strong investor interest, with indications suggesting that the offer may be oversubscribed following the close of the indication-of-interest period.
The offer implies a valuation of approximately $39.1 billion for the refinery, making it one of the most valuable privately held industrial assets in Africa. The refinery currently has approximately 111.67 billion ordinary shares in its share capital. The private placement is expected to raise about $1 billion in fresh capital.
Applications require a minimum subscription of 1 million shares, equivalent to an investment of $350,000. Additional subscriptions are accepted in multiples of 500,000 shares, while investors will be subject to a 365-day lock-up period from the date of allotment.
According to the memorandum, the proceeds will be used to support ongoing expansion projects and general corporate purposes, with the fundraising exercise described as a key component of the refinery’s broader funding strategy.
The refinery’s $39.1 billion valuation reflects investor expectations regarding its strategic role in Nigeria’s energy sector and its growing influence across regional petroleum markets.
It also highlights the scale of the facility’s contribution to reducing Nigeria’s dependence on imported refined petroleum products. The refinery has a processing capacity of 650,000 barrels per day and commenced petroleum product production in 2024.
Operations have expanded across multiple product lines, including diesel, aviation fuel, naphtha, and premium motor spirit (PMS).
Industry analysts noted that the facility has significantly altered fuel supply dynamics within Nigeria while creating new export opportunities.
The valuation further highlighted investor confidence in the refinery’s ability to generate long-term value through domestic supply and regional exports.
The current capital raise forms part of the refinery’s broader expansion programme as it continues to strengthen its position in regional energy markets.
Market observers viewed the transaction as a potential step toward broadening the company’s shareholder base ahead of any future listing.
Aliko Dangote has previously indicated plans to eventually list the refinery on the capital market.
With indications suggesting that demand has already exceeded the targeted raise, the transaction could rank among the most significant private capital raises in Nigeria’s corporate history while serving as a key test of investor appetite for large-scale Nigerian industrial assets
