Africa’s Biggest IPO Draws Closer as Dangote Refinery Files with SEC

Africa’s Biggest IPO Draws Closer as Dangote Refinery Files with SEC

Dangote Petroleum Refinery has formally approached Nigeria’s Securities and Exchange Commission to begin the process for an initial public offering, marking a key step toward what is expected to become Africa’s largest stock market listing.

Newera News learnt that the refinery’s advisers are working with company officials and the SEC to process the application, SEC Director-General Emomotimi Agama said in an interview, adding that the regulator does not anticipate delays that could derail the planned share sale.

“If any issue arises, SEC will resolve it. That is why SEC exists,” Agama Said.

No date has been formally approved for the transaction, though the company continues to target a September listing, consistent with plans previously reported by BusinessDay.

The IPO would rank among the continent’s biggest equity offerings and represent the most significant addition to Nigeria’s capital market in years, following repeated calls by regulators for large private companies to deepen the country’s equity market through public listings.

The application follows months of preparatory work between Dangote Refinery, its advisers and the SEC. Agama said early engagement with the regulator has helped streamline the process, a practice he said the commission intends to encourage for future listings.

The SEC has also concluded investigations into the premature promotion of the refinery’s planned offering by some market participants before regulatory approval had been obtained. Agama said sanctions are being imposed on entities found culpable, without identifying those that are affected.

The progress comes days after Dangote Refinery completed a $2.5 billion private placement that was 3.7 times oversubscribed, providing another indication of strong investor appetite ahead of the planned public offering.

The fundraising is expected to strengthen the company’s balance sheet as it ramps up operations at the 650,000-barrel-a-day refinery, the largest single-train refinery in Africa.

Newera News reported earlier this year that Dangote Group was preparing to list the refinery on the Nigerian Exchange as part of commitments made by billionaire industrialist and Africa’s richest man, Aliko Dangote, to broaden public ownership of the business.