Dangote refinery aims to raise $1.6 billion in Nigeria IPO

Dangote Petroleum Refinery is preparing an initial public offering that could raise about $1.6 billion, the Nigerian company said Friday.

The Lagos-based refinery, owned by Aliko Dangote, plans to offer 4.1 billion ordinary shares at 525 naira each. The company said the offer could raise about 2.15 trillion naira, or $1.6 billion, if fully subscribed.

A company official said the listing is expected on September 14. The company said Nigeria's Securities and Exchange Commission has approved the IPO launch.

Dangote Petroleum Refinery said it aims to use the funds to double capacity to 1.4 million barrels a day. It said that would make it the world's largest refinery, ahead of Jamnagar in India.

The company secured $2.5 billion from private investors in July to fund expansion plans as it widens its refining business to east Africa. Dangote is planning a 700,000-barrel-per-day oil refinery in Lamu, on Kenya's coast, with groundbreaking set for September 30, an official confirmed.

Nigeria is Africa's leading crude producer. Aliko Dangote said in July that the company aims to reduce Africa's reliance on imported refined products and strengthen the continent's energy security.