Dangote targets $50bn refinery valuation ahead of Nigeria listing

Aliko Dangote, Africa’s richest person, is targeting a valuation of $50 billion for Dangote Petroleum Refinery & Petrochemicals FZE ahead of a planned stock market listing later this year, according to people familiar with the matter.

The refinery company could sell up to a 10 percent stake through the Nigerian listing, implying a potential offering size of about $5 billion, the sources quoted by Bloomberg said.

A senior executive at the Dangote Group confirmed that the projected valuation aligns with the company’s current internal expectations but declined to provide additional details on the planned transaction.

The planned listing comes as stronger global crude oil prices and growing domestic fuel demand improve the commercial outlook for the 650,000 barrels-per-day refinery, which has increasingly become a dominant player in Nigeria’s downstream petroleum market.

The development also follows recent comments by Dangote indicating that Nigerians would soon be given the opportunity to directly purchase shares in the refinery business.

The refinery, located in the Lekki Free Zone in Lagos, is Africa’s largest single-train refinery and has significantly altered fuel supply dynamics in Nigeria since commencing large-scale supply of Premium Motor Spirit (PMS), diesel and aviation fuel.

Industry analysts said a successful public offering could become one of the largest listings in Nigeria’s capital market history and potentially deepen local investor participation in the country’s energy sector.

The refinery has also expanded into petrochemicals and is developing additional industrial projects, including linear alkyl benzene production for detergent manufacturing targeted at both Nigerian and African markets. (BusinessDay)