By PETHS News Editorial Desk

Nigeria’s Securities and Exchange Commission has approved the planned initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE, clearing a major regulatory hurdle for a share sale expected to raise about ₦2.15 trillion.

The proposed offer involves 4.1 billion ordinary shares at ₦525 per share, according to information released by Dangote Group and independently reported by Reuters.

If fully subscribed, the offer would raise about ₦2.15 trillion, equivalent to roughly $1.6 billion at current exchange rates.

PETHS News checks of statements released by Dangote Group, previous notices issued by the Securities and Exchange Commission, and independent reports indicate that the latest approval marks a significant advance in the refinery’s long-planned move to the Nigerian capital market.

Dangote Group said the SEC’s approval was communicated in a letter addressed to Vetiva Advisory Services Limited, the lead issuing house for the transaction.

The company also said the regulator had registered the refinery’s existing 120.13 billion ordinary shares, while approval of the draft offer documents allows the transaction to proceed to the next stage of the listing process.

Reuters separately confirmed the SEC approval and reported the same offer size and price, providing independent verification of the central details announced by the company.

The latest development represents a major shift from the SEC’s position in June.

On June 23, the commission warned investors against advertisements and online campaigns promoting purported shares in Dangote Petroleum Refinery.

At the time, the SEC said no application for an initial public offering or public offer of the refinery’s shares had been filed with or approved by the commission.

It subsequently directed capital-market operators to stop promoting unauthorised offers relating to the refinery.

Dangote Refinery also distanced itself from the earlier solicitations and advised investors to rely only on officially recognised regulatory channels.

The latest approval therefore indicates that the formal regulatory process has since progressed substantially.

Dangote Eyes Expansion

The IPO comes as Dangote Group pursues plans to expand the refinery’s operations and broaden ownership of the multibillion-dollar facility.

Aliko Dangote had earlier said the company planned to open the share offer within days and ultimately increase the refinery’s processing capacity to about 1.4 million barrels per day.

The refinery, located in Ibeju-Lekki, Lagos State, began operations in 2024 and has since become a major player in Nigeria’s petroleum-products market.

Dangote has said the proposed listing is intended to give both Nigerian and international investors an opportunity to participate directly in the refinery business.
Information independently reported so far confirms that the SEC has approved the IPO process, with 4.1 billion shares expected to be offered at ₦525 each.

The refinery’s existing 120.13 billion shares have also been registered, while Vetiva Advisory Services is serving as lead issuing house.

Reuters has reported that the IPO order book could open on September 14, citing a source familiar with the transaction.

However, Dangote Group has not publicly confirmed that specific date in the materials reviewed by PETHS News, meaning the reported opening date should still be treated as provisional.

The offer is expected to attract significant interest from institutional and retail investors, but analysts are also likely to scrutinise the refinery’s valuation.

Reuters reported that some market participants consider the implied valuation high when compared with publicly listed international refining companies of similar capacity.

The final prospectus, offer timetable, allocation structure and listing arrangements are therefore expected to receive close attention once formally released.

If completed, the transaction would rank among the largest share offerings in Nigeria and could significantly deepen activity on the country’s capital market.

It would also give investors direct exposure to one of Africa’s biggest privately developed industrial projects.