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The offering has attracted applications worth about N5.85tn ($4.1bn), against an initial fundraising target of at least $1.6bn.
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Nigerian investors accounted for about $1.9bn in interest, while prospective international buyers indicated demand of another $2.1bn.
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The refinery is considering a 30 per cent over-allotment option that could raise the offering to about $2.1bn.
November 12, (THEWILL) – Dangote Petroleum Refinery’s initial public offering has attracted share applications worth about N5.85tn ($4.1bn), more than two-and-a-half times its initial fundraising target, amid strong demand from Nigerian and international investors.
According to a Bloomberg report, the share sale has received applications from all 54 African countries, with demand exceeding the number of shares available under the original offer.
The refinery had initially targeted to raise at least $1.6bn through the IPO but attracted about $1.9bn in investment interest from Nigerian investors and another $2.1bn from prospective international buyers, people familiar with the transaction told Bloomberg.
The reported subscription value represents investor demand and should not be confused with the amount the company will ultimately raise from the offer.
The scale of interest has prompted the refinery to consider expanding the offering to accommodate more investors, although the proposed increase may still leave some demand unmet.
“There are close to four million unique subscription applications,” the people familiar with the transaction said, according to Bloomberg.
The level of retail participation is significant given the refinery’s earlier target of attracting 10 million individual investors as part of efforts to broaden ownership beyond institutional investors and wealthy individuals.
Pension funds, foreign investors seek allocations
Institutional investors have also shown strong interest in the offering, including pension fund managers in Nigeria and South Africa.
The Public Investment Corporation, which manages about $220bn in pension assets belonging to South African state workers, reportedly requested a substantial allocation in the refinery, although the amount was not disclosed.
Nigerian pension fund managers, whose investments cover about 11 million members, have also sought allocations, Bloomberg reported.
The report said the South African fund’s request could be accommodated through a secondary share sale, potentially creating additional room for investors seeking exposure to the refinery.
The strong foreign demand has also raised the prospect of an expanded allocation.
Bloomberg reported last month that the refinery was expected to exercise an additional 30 per cent over-allotment option, largely to accommodate overseas investors.
The proposed expansion could increase the fundraising target to about $2.1bn from the initial $1.6bn.
However, demand from international investors is reportedly still higher than the shares available, even under the expanded allocation.
“Even with the expanded allocation that would take the fundraising to about $2.1bn, demand from foreign investors has exceeded available stock,” the report said.
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Allotment, trading timeline
The refinery is expected to submit a draft share allotment announcement to the Securities and Exchange Commission this week, according to people familiar with the transaction.
The regulator is expected to approve the share distribution on November 17, while trading is scheduled to commence 15 business days after the allotment date.
Based on that timetable, trading could begin around December 8, although the company is reportedly targeting a commencement before the end of November, subject to regulatory approvals.
The offering has attracted attention across African capital markets, with exchanges on the continent providing structures to enable investors in different countries to participate.
The scale of demand highlights the potential of African investors to mobilise substantial capital for major projects on the continent, reducing exclusive reliance on international financial centres for large-scale fundraising.
Owned by Africa’s richest man, Aliko Dangote, the 700,000-barrel-per-day refinery is located in the Lekki area of Lagos State. It is a major part of Nigeria’s efforts to reduce dependence on imported petroleum products.
The IPO is expected to broaden the refinery’s ownership base, attract long-term institutional investment, and increase participation in African capital markets.
However, the final amount raised will depend on the approved share allocation and the outcome of the allotment process.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
