The Dangote Refinery IPO Prospectus is about 194 pages.
It will probably take you the whole day to read through it.
I know many of you are too busy and may not have the luxury of time to read it.
I decided to do you a favour like I’ve always done on this page. Hopefully, you will pass on the favour to someone else by sharing this post.
Here’s the basic summary of everything you need to know about this IPO.
First, what is an IPO?
An IPO stands for an Initial Public Offering, which is the process where a private company sells shares of its stock to the general public for the first time.
In the case of Dangote Refinery IPO, two things will happen. The company will go public and also raise capital. Once it’s listed, people can start trading it on the Nigerian Stock Exchange.
📌 The issuer: Dangote Petroleum Refinery & Petrochemicals FZE
📌 The Lead Issuing House: Vetiva Advisory Services Limited
📌 Joint Issuing Houses:
— FirstCap Limited
— Stanbic IBTC Capital Limited
— Chapel Hill Denham Advisory Limited
— Absa Capital Markets Nigeria Limited
— Afrinvest Capital Limited
— CardinalStone Partners Limited
— Comercio Partners Capital Limited
— Cordros Advisory Services Limited
— Coronation Merchant Bank Limited
— Cowry Asset Management Limited
— Ecobank Development Company Limited
— FCMB Capital Markets Limited
— Finmal Finance Services Limited
— First Ally Advisory Limited
— FSDH Capital Limited
— Futureview Financial Services Limited
— Greenwich Capital Markets Limited
— Meristem Capital Limited
— Quest Merchant Bank Limited
— Quantum Zenith Capital & Investments Limited
— Rand Merchant Bank Nigeria Limited
— Renaissance Securities (Nigeria) Limited
— SCM Capital Limited
— Tiddo Securities Limited and
— United Capital Plc
📌 Total Share Capital: US$1,631,250.00 made up of 125,480,769,230 ordinary shares of US$0.000013 each
📌 Issued Share Capital: US$1,561,675.9067134 comprising 120,128,915,901 ordinary shares of US$0.000013 each
📌 Purpose of the Offer:
The Offer is intended to broaden public ownership of the Issuer and support its long-term growth strategy through the expansion of its refining and petrochemicals capacity, thereby enhancing its ability to meet growing demand for refined petroleum and petrochemical products.
The Offer will also enhance the Issuer’s access to the capital markets, broaden and diversify its investor base and provide efficient platform to support future growth initiatives and strategic development objectives.
📌 Mode of Offer: Fixed Price
📌 Offer Price: N525.00 per share
📌 Gross Proceeds (if all the units are sold): ₦2,152,500,000,000.00
Use of Proceeds:
Table of Contents
After deduction of the costs and expenses of the Offer, estimated at ₦41,492,782,688.91 (representing 1.93% of the gross Offer proceeds), the net Offer proceeds of ₦2,111,007,217,311.09 will be applied towards growth capital expenditure in connection with the Issuer’s refinery expansion programme.
The Issuer currently operates refining capacity of approximately 700,000 barrels per day and is undertaking an expansion programme intended to increase refining capacity by a further approximately 700,000 barrels per day, together with the development of associated infrastructure and ancillary facilities.
The expansion programme is expected to be implemented over a five-year period and is currently targeted for completion by 2029. Aggregate capital expenditure for the programme is estimated at approximately US$14.3 billion. Capital expenditure will be incurred progressively as the project advances and in line with engineering, procurement and construction activities, contractual milestones and the value of work completed. Accordingly, the estimated programme cost represents the total anticipated capital expenditure over the implementation period and does not constitute an immediate funding requirement.
📌 Opening Date: 14 September 2026
📌 Closing Date: 13 October 2026
📌 Market Capitalisation of the Issuer Pre-Listing: ₦63,067,680,848,025.00
📌 Indicative Market Capitalisation of the Issuer at Listing: ₦65,220,180,848,025.00
📌 Minimum Subscription: 10 Offer Shares and multiples of 10 Offer Shares thereafter.
📌 What happens when there’s an oversubscription?
In the event of an over-subscription, the Issuer may absorb up to 30% of the Offer subject to the approval of the SEC.
Retail Investor Incentive Programme
Subject to the receipt of all required approvals, a Retail Investor who subscribes for and is allotted Offer Shares equal to or greater than the Minimum Subscription and maintains Continuous Shareholding of not less than the Minimum Subscription for twelve (12) months from the Allotment Date will become eligible to receive one (1) Incentive Share at no additional cost.
A Retail Investor who maintains such Continuous Shareholding for a further twelve (12) months will become eligible to receive one (1) additional Incentive Share at no additional cost. The maximum entitlement under the Retail Investor Incentive Programme is two (2) Incentive Shares per eligible Retail Investor.
Shariah Compliance
Alhaji Aliko Dangote is a practicing Muslim to the core.
Buraq Capital Limited conducted a Shariah assessment of the Issuer and the Offer by reference to AAOIFI Shariah Standard No. 21 and the screening criteria as adopted and adapted for the purposes of the Offer.
The appointed Shari’ah Adviser have expressed the opinion that, on the basis of the information and representations reviewed, and subject to the assumptions, limitations, and continuing obligations outlined in their opinion, the Issuer satisfies the applicable Shariah business activity and financial screening criteria.
Furthermore, the arrangements relating to the Offer that were examined by the Shari’ah Adviser do not contain any feature that would render the Offer non-compliant with Shariah principles.
Accordingly, the Shari’ah Adviser has concluded that investment in the Ordinary Shares offered pursuant to the Offer is permissible under Shari’ah.
The Shariah Opinion and Certification issued by FRACE are not investment opinions. They are based on the facts, documents and representations reviewed as at the date of the Shariah Opinion and should not be construed as a permanent or continuing certification of the Shariah compliance of the Shares.
The compliance status may change with changes in the Enterprise’s activities, borrowings, interest-earning deposits or investments, income composition and capital structure. Each investor should independently ascertain the continued Shariah-compliant status of the Shares from time to time.
Indebtedness
As at 31 December 2025, the Issuer’s total borrowings amounted to US$6,242,530,000,
comprising secured bank loans of US$2,255,037,000 and unsecured borrowings of US$3,987,493,000 from Dangote Industries Limited, the Issuer’s controlling shareholder and a related party. As at 30 June 2026, the Issuer’s total indebtedness, incurred in the ordinary course of business, stood at approximately US$5.67 billion, all being secured borrowings.
This IPO and the company entirely isn’t without a risk. I wanted to also mention some of the risk factors that were outlined in the Prospectus but they are too much to type here. If you are in Nigeria and you’ve been following the world news you should be conversant with so many of them by now.
Please, make sure nobody uses this avenue to defraud you.
Only invest in this Dangote Refinery IPO through a licensed stockbroker (including digital brokers), accredited banks or through one of the issuing houses above.
Share this with friends to educate more people.
But if you have the time or wish to dig deeper into the prospectus, go through the Dangote Refinery IPO Prospectus PDF below:
