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SEC Approves Dangote Refinery’s N2.15trn IPO, Clears Path for Historic Capital Raise

Aliko-Dangote-President-Dangote-Group

Securities and Exchange Commission (SEC) has approved the commencement of the Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE, paving the way for what could become one of the largest capital market transactions in Nigeria’s history.

The approval was conveyed in a letter to Vetiva Advisory Services Ltd., the lead issuing house, and signed by Abdulkadir Abbas, Director, Securities and Investment Services Department of the SEC.

According to the Commission, the proposed offering comprises 4.1 billion ordinary shares at N525 per share, with the potential to raise about N2.15 trillion if fully subscribed.

The SEC also registered the company’s existing 120.13 billion ordinary shares.

The regulatory approval clears the refinery’s draft offer documents and authorises the company to proceed with its Completion Board Meeting and Signing Ceremony, marking a significant milestone in the IPO process.

The clearance is expected to open investment opportunities in one of Africa’s strategic industrial assets while further deepening Nigeria’s capital market.

The Dangote Refinery and Petrochemicals Complex occupies about 2,635 hectares and houses an integrated refining and petrochemicals facility.

The refinery currently has a refining capacity of 700,000 barrels per day, making it the largest single-train refinery in the world, alongside a polypropylene plant with a production capacity of 900,000 tonnes per annum.

The facility is powered by a dedicated 435-megawatt power plant.

At full production, the refinery is designed to meet Nigeria’s domestic demand for refined petroleum products while producing substantial volumes for export.

The facility is also undergoing expansion expected to raise its capacity to 1.4 million barrels per day, which would position it as the world’s largest refinery.

The complex is supported by extensive infrastructure, including a dedicated marine facility designed to improve logistics and freight efficiency.

It also has five Single Point Moorings (SPMs), described as the world’s largest single order of such facilities, and incorporates processing technology designed to meet World Bank, United States Environmental Protection Agency (EPA), European emission standards and Nigerian regulatory requirements.

Its integrated port infrastructure comprises multiple quays capable of handling Panamax vessels, liquid cargo shipments and roll-on/roll-off operations.

The facility’s storage network consists of 177 tanks with a combined capacity of 4.742 billion litres.

With the SEC approval secured, Dangote Petroleum Refinery and Petrochemicals FZE is set to proceed with its public offering, which could significantly broaden investor participation in the refinery and mark a major development in Nigeria’s capital market.

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Frank
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Franklin Ugo Ndibe is a seasoned Nigerian journalist and media professional renowned for his incisive reporting and editorial leadership in the information and communications technology (ICT) sector.

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