Dangote refinery chooses Stanbic IBTC, Vetiva Capital Management, and First Capital

The Dangote Group has appointed three investment banks to lead what could become the largest equity offering in African capital market history, as the planned listing of the Dangote Petroleum Refinery & Petrochemicals FZE on the Nigerian Exchange moves from announcement into execution.

Stanbic IBTC Capital, Vetiva Capital Management, and First Capital have been selected as lead issuing houses and financial advisers for the refinery listing, according to people familiar with the matter. Stanbic IBTC, operating under the Standard Bank umbrella, is expected to manage the international book-building process and lead engagement with foreign portfolio investors. Vetiva, which has advised on previous Dangote listings, brings experience in local retail distribution and regulatory navigation. First Capital adds strength in placement among Nigerian pension funds and institutional asset managers.

Ambrose Omordion, chief operating officer of Investdata Consulting, said the three firms had played critical roles in major NGX transactions and could manage a listing of this scale.

The group plans to float between five and ten per cent of a refinery that cost $20 billion to build. Analysts estimate a debut valuation of between $40 billion and $50 billion, which would push the NGX’s total market capitalisation beyond ₦200 trillion.

A notable feature of the offering is its proposed dividend structure. Investors would be able to buy shares in naira whilst choosing to receive dividends in US dollars — a first for the NGX, backed by the refinery’s projected $6.4 billion in annual export revenue. The mechanism is designed to reduce exposure to currency risk for foreign investors and will require specific regulatory approval. Both the SEC and the NGX are in active discussions with the Dangote team on the structure.

Dangote first disclosed the listing timeline on 21 February, during a tour of the facility by NNPC Group Chief Executive Bayo Ojulari, saying shares would be available to investors within four to five months. The transaction is now understood to be tracking towards a prospectus submission to the SEC in April, a national retail roadshow and e-IPO subscription platform launch in May, and a formal main board listing between June and July 2026.

Separately, Dangote Cement signed a strategic framework agreement in Lagos at the weekend with Sinoma International Engineering of China, covering the construction of 12 new projects and the expansion of existing facilities across Africa at a cost of over $1 billion. The deal is tied to the company’s target of reaching 80 million tonnes per annum of production capacity by 2030, within the Dangote Group’s broader goal of $100 billion in annual revenue by the same year.

Under the agreement, Sinoma will deliver new plants, brownfield expansions, and modernisation works across multiple markets. New integrated and grinding facilities are planned for northern Nigeria, Ethiopia, Zambia, Zimbabwe, Tanzania, Sierra Leone, and Cameroon. Within Nigeria, Sinoma will handle projects at Itori, Apapa, Lekki, Port Harcourt, and Onne.

Group Managing Director Arvind Pathak said the agreement was aimed at closing supply gaps and supporting infrastructure development across the continent, with a stated goal of making Africa self-sufficient in cement production. Board chairman Emmanuel Ikazoboh said the completed projects would increase the company’s production capacity and strengthen its position in the African market.

The cement expansion is supported by a recently upgraded gas supply arrangement with NNPC subsidiaries — Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company — which will guarantee fuel supply for increased production in Nigeria and support the adoption of compressed natural gas as an automotive fuel. (BusinessDay)