Dangote refinery IPO fully subscribed as investors from 119 countries pile in

The share sale by Dangote Petroleum Refinery, Africa's largest oil refinery, closed fully subscribed on Tuesday, October 27, the company said, after drawing investors from 119 countries.

The initial public offering (IPO), which opened in mid-September, had been extended by two weeks because of strong demand, with the approval of Nigeria's Securities and Exchange Commission (SEC).

Millions of small investors

The sale has been notable for the number of ordinary Nigerians taking part. Nairametrics reported more than ₦860bn in online retail subscriptions from about 1.55 million unique online subscribers, and said total retail participation could reach five million once offline applications are counted.

OilPrice.com reported that the IPO hit its $1.6bn target on domestic and retail demand alone, with orders from 119 countries pushing it higher, and cited a valuation of about $47bn for the refinery.

What happens next

Under the company's revised timetable, the draft allotment, which decides how many shares each investor receives, goes to the SEC on November 10. A date for the shares to start trading has not yet been confirmed.

Why the refinery matters

The refinery in Lagos, built by Africa's richest man, Aliko Dangote, was designed to end Nigeria's long-standing paradox: a major oil producer that imported most of its petrol because its state-owned refineries barely worked. It reached full capacity of 650,000 barrels per day earlier this year, and the company has announced plans to expand to 1.4 million barrels per day, which would make it the largest refinery in the world.

The refinery has also become an exporter. Recent reports say it has signed a fuel supply deal with Cameroon's state refiner.

Expanding across Africa

Dangote is also building a $16bn refinery at Lamu in Kenya, launched with Kenyan President William Ruto in October. A Kenyan tribunal has dismissed a consumer group's challenge to the project. Dangote has said he aims to complete it within 40 months.

The IPO's success is likely to be seen as a vote of confidence in Nigerian industry, and a test case for whether large African companies can raise money from their own citizens rather than relying on foreign capital.