Dangote Refinery IPO Draws Nearly $4.8B in Orders

Dangote Petroleum Refinery's $1.6 billion initial public offering drew approximately ₦6.4 trillion, or $4.78 billion, of orders from Nigerian investors before closing on October 27, according to people familiar with the offering.

By Carolina Curiel
Published October 28, 2026

MONTREAL (Oil Monster): Investor demand for shares in Nigeria's Dangote Petroleum Refinery substantially exceeded the size of its initial public offering before the offer closed Tuesday, underscoring strong interest in one of Africa's largest industrial companies.

Orders from Nigerian retail and institutional investors reached approximately ₦6.4 trillion, equivalent to about $4.78 billion, two people familiar with the offering told Reuters.

The IPO originally offered 4.1 billion shares at ₦525 each, targeting approximately ₦2.15 trillion, or about $1.6 billion.

Demand Reached Nearly Three Times the Offer

The reported ₦6.4 trillion order book is equivalent to roughly three times the size of the original offering.

Reuters reported that more than 2 million investors had subscribed through digital channels before the offer closed, with additional demand expected from investors outside Nigeria.

Dangote's official IPO portal now says applications were received from 120 countries across six continents, including all 54 African countries.

The company has not yet released an official final subscription total, so the ₦6.4 trillion figure remains based on Reuters sources rather than a completed company allotment announcement.

Greenshoe Could Increase Offer Size

Strong demand could allow Dangote to exercise a greenshoe option that would increase the size of the offering to as much as approximately $2.1 billion, according to a Reuters source familiar with the transaction.

Dangote had not publicly confirmed whether it would exercise that option as of October 28.

Allotment Process Is Now Underway

The offer officially closed on October 27 after an extension from the original October 13 deadline.

Dangote says applications are now being checked before the proposed basis of allotment is submitted to Nigeria's Securities and Exchange Commission.

Under the revised indicative timetable, application returns are scheduled to be collated by November 3, with the proposed basis of allotment submitted to the SEC on November 10.

The company is targeting regulatory no-objection to the allotment on November 17, after which refunds, share credits and the Nigerian Exchange listing process can proceed.

The timetable remains indicative and may change.

Refinery Earnings Strengthen the Investment Story

The IPO follows a sharp improvement in Dangote Refinery's financial performance.

The company reported a $4.73 billion net profit for the first nine months of 2026 as higher processing rates, stronger refining margins and growing product exports lifted earnings.

The refinery currently has approximately 700,000 barrels per day of crude-processing capacity and plans to expand to about 1.4 million bpd by 2029.

Dangote Is Reshaping Nigeria's Fuel Trade

Higher refinery output has already reduced Nigeria's reliance on imported petroleum products while increasing exports to other African countries and Europe.

Nigeria's seaborne petroleum-product exports averaged approximately 350,000 barrels per day during the second quarter of 2026, while imports fell sharply from levels recorded before Dangote began operating.

The Bottom Line

Demand for the Dangote IPO appears to have substantially exceeded the original offer, but the final size of the offering and individual share allocations have not yet been officially announced.

The next important milestone is the SEC-approved basis of allotment, followed by settlement and the refinery's debut on the Nigerian Exchange.

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Courtesy: www.reuters.com