Nigerians could soon have an opportunity to own a stake in the Dangote Petroleum Refinery as the facility prepares for a planned initial public offering (IPO) that could become one of Africa’s largest.

The refinery has submitted an application for a potential $5 billion IPO to Nigeria’s Securities and Exchange Commission (SEC), according to a source familiar with the matter who spoke to Reuters. However, the final size of the offering has not been determined.

David Bird, chief executive officer of Dangote Petroleum Refinery, said the company’s ambition is to make the IPO widely accessible to Nigerians.

“We really want to drive participation,” Bird told Reuters, describing the proposed offering as a “people’s IPO.”

The plan could give Nigerian investors a rare opportunity to participate directly in the growth of one of the country’s most significant industrial projects.

Foreign listing put on hold While international investors could eventually gain access to the refinery, Bird said the company does not plan to pursue a foreign listing immediately.

According to the CEO, the refinery wants at least three years of demonstrated production and financial performance before considering an overseas listing.

Such a track record, he said, could help the company secure a stronger valuation.

London has been mentioned as a possible destination for a future international listing. Bird declined to disclose the refinery’s valuation or confirm the final size of the planned IPO.

However, the company’s July private placement raised $2.5 billion and valued the refinery at approximately $40 billion.

Investor interest builds Investor appetite for the refinery appears strong. Africa Finance Corporation said it led a group of strategic investors in the July private placement, which was reportedly 3.7 times oversubscribed.

The transaction attracted significant demand from African and international institutional investors, highlighting the growing investor interest surrounding the refinery.

The facility has also benefited from disruptions in global energy markets linked to the Iran war, increasing demand for alternative supplies of refined petroleum products.

Bird said the refinery became Europe’s largest supplier of jet fuel in June and July, while its products have also found markets across Africa and Western Europe.

Refinery targets major expansion

Dangote Petroleum Refinery is also preparing for a massive expansion that could nearly double its current capacity.

Bird confirmed plans to increase refining capacity to 1.4 million barrels per day within three years. The expansion will be financed partly through proceeds from the IPO and additional debt.

The new investment is expected to cost substantially less than the approximately $20 billion spent to build the original refinery.

Bird said the refinery has strong advantages over many US refining assets, including access to local crude supplies, robust domestic demand and an integrated operating structure.

The facility currently supplies most of Nigeria’s gasoline and diesel requirements and meets the country’s entire jet fuel demand.

With Africa still facing a structural shortage of refined petroleum products and petrochemicals, Dangote believes the refinery has significant room to expand.