Dangote refinery seeks $1bn, hits $39bn valuation

By Abubakar Yunusa

Dangote Petroleum Refinery is seeking to raise $1bn through a private placement as the industrial giant pushes ahead with its expansion plans, with the exercise valuing the facility at about $39.1bn.
According to details contained in the placement memorandum seen by Reuters, the refinery is offering three billion ordinary shares at $0.35 per share. If fully subscribed, the transaction is expected to generate approximately $1bn in fresh capital.
The proposed valuation places the 650,000 barrels-per-day refinery among Africa’s most valuable privately held industrial assets and above the market capitalisation of almost all companies listed on the Nigerian Exchange.
The memorandum indicated that the minimum subscription has been fixed at one million shares, equivalent to $350,000, while additional subscriptions would be accepted in increments of 500,000 shares.
It further stated that successful investors would be subject to a 365-day lock-up period from the date of allotment.
The refinery said proceeds from the capital raise would be deployed towards ongoing expansion projects and general corporate purposes as part of its broader funding strategy.
Dangote Refinery commenced production in 2024 and currently processes 650,000 barrels of crude oil daily. Its products include diesel, aviation fuel, naphtha and Premium Motor Spirit, popularly known as petrol.
Industry analysts noted that the lofty valuation reflects growing confidence in the refinery’s strategic importance in reducing Nigeria’s dependence on imported refined petroleum products.
They also pointed to the facility’s potential to boost regional exports and strengthen energy security across West Africa.
The capital raising exercise forms part of a wider expansion drive expected to include further investments in logistics and storage infrastructure, deeper distribution networks and possible expansion into ancillary petrochemical operations.
For many market observers, the move underscores the refinery’s ambition to consolidate its dominance in Africa’s downstream oil sector while positioning itself as a major force in the global energy value chain.