Dangote Petroleum Refinery seeks more than 10 million retail investors for its current initial public offering (IPO), which would more than double the 4.5 million retail subscribers Saudi Aramco achieved during its 2019 listing.
The IPO, now extended to October 27, intends to raise up to $1.6 billion to support the expansion of Dangote’s Nigerian refinery.
Currently processing 700,000 barrels per day, Dangote’s refinery plans to increase its capacity to 1.4 million bpd by 2029.
Such expansion would position the Lagos-based refinery as the world’s largest single-train facility in terms of capacity.
Dangote Refinery is also extending its record refinery IPO into East Africa, with nearly 20 percent of shares available.
According to Reuters, Dangote Refinery chief executive officer David Bird informed investors that the refinery is targeting 10 million retail investors for its IPO, which launched on October 14.
Saudi Aramco’s listing has since served as a benchmark for large-scale retail participation, and Dangote is now looking to surpass that mark.
Energy industry watchers say Dangote is targeting the world’s largest refinery, with the Lagos-based facility currently handling 700,000 barrels per day.
The IPO will raise $1.6 billion to fund the expansion of processing capacity to 1.4 million bpd by 2029.
The planned expansion is one of the reasons behind the IPO, with Dangote seeking fresh capital as it moves to build additional refining capacity and strengthen its position in global petroleum markets.
Saudi Aramco’s 2019 IPO was previously the world’s largest by funds raised, generating $29.4 billion after its over-allotment option was exercised.
However, energy industry watchers state that Aramco remains relevant to Dangote’s IPO due to its retail participation, with Dangote targeting 10 million retail investors.
Investment analysts say that if Dangote reaches the 10 million-investor target, its retail investor base would be more than twice the size of Aramco’s 2019 participation.
