Dangote targets $50bn IPO valuation for refinery
Aliko Dangote said he is targeting a $50 billion valuation for his refinery business ahead of a planned stock market listing in Nigeria later this year. A report by Bloomberg, quoting sources, noted that the company wants to sell up to a 10 per cent stake, potentially raising around $5 billion in one of Nigeria’s biggest capital market deals.
The 650,000-barrels-per-day refinery has transformed Nigeria’s fuel supply chain by reducing dependence on imported petroleum products. A senior executive at the Dangote Group confirmed to Bloomberg that the projected valuation reflects the company’s internal expectations but declined to comment further on the timing or structure of the transaction.
The planned listing comes as rising global crude oil prices and stronger domestic fuel consumption improve the refinery’s commercial outlook. Located in the Lekki Free Zone in Lagos, the facility has a refining capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery. The Dangote Group had appointed a consortium of three financial advisers to manage the offering. Stanbic IBTC Capital, operating under the Standard Bank umbrella, will handle the international book-building process and lead engagement with foreign portfolio investors.
Vetiva Capital Management, which has advised on previous Dangote listings, will manage retail investor distribution within Nigeria, while FirstCap will focus on placements with Nigerian institutional investors, particularly pension funds, according to the report.
