Dangote Refinery unveils IPO prospectus: Here’s all you need to know about the huge ₦2.15tn affair

The prospectus for the Dangote Petroleum Refinery and Petrochemicals FZE Initial Public Offering (IPO) has been released, providing investors with key details about the offer and how the funds will be used.

The refinery plans to offer 4.1 billion ordinary shares at ₦525 each, with the subscription period running from September 14 to October 13, 2026. If all shares are sold, the IPO could raise ₦2.1525 trillion.

Nigerian investors can participate by buying at least 10 shares, which cost ₦5,250. Additional shares can be purchased in increments of 10. Each share has a nominal value of US$0.000013 and will have the same rights as existing shares.

The prospectus states that an application has been submitted to the Nigerian Exchange (NGX) to list both the 4.1 billion shares and the company’s existing 120.13 billion shares. Once approved, investors will be able to trade their Dangote Refinery shares on the NGX post-IPO.

Similar read: Dangote Refinery’s ₦2.15tn IPO to open September 14, sets minimum subscription at ₦5,250

What Nigerians are buying and where the money will go

Dangote Refinery is offering 4.1 billion new shares to the public, but this is not a sale of the entire company. The purpose of this initial public offering (IPO) is to help the refinery grow in the long run, especially by expanding its capacity for refining oil and making petrochemicals. This move will also bring in more investors and improve the company’s access to funding for future projects.

Currently, the refinery can process about 700,000 barrels of oil per day. There’s a plan to double this capacity to around 1.4 million barrels per day by 2029, which will cost about $14.3 billion over the next five years.

Not all the ₦2.1525 trillion raised at the IPO will go directly to the expansion. The costs associated with the IPO itself are estimated to be around ₦41.49 billion, leaving around ₦2.111 trillion to actually fund the Dangote refinery expansion.

This money is going to be divided in three main ways:

1. Refinery Equipment: Around ₦686.5 billion (about 32.5% of the net proceeds) will be used for upgrading refinery process units and buying major equipment.
2. Utilities and Infrastructure: About ₦841 billion (or 39.8%) will be allocated for utilities, offsite facilities, and other necessary infrastructure.
3. Construction and Installation: The last chunk, around ₦583.5 billion (27.6%), will cover construction, installation, and other expansion work.

The rest of the money needed for this big expansion will come from the refinery’s own profits in the future and other financing options like loans and project financing. So, the IPO is just helping to fund a part of the overall $14.3 billion expansion plan, not the whole thing.

What the prospectus says about Dangote Refinery’s finances

The prospectus reveals that the Dangote Refinery is showing strong financial growth in 2026. In the first half of the year, the refinery made ₦19.13 trillion in revenue, which is higher than the total revenue of ₦18.74 trillion for all of 2025. During this same six-month period, the refinery also turned a profit of ₦2.50 trillion, a big turnaround from a loss of ₦723.06 billion in 2025. This gives them a profit margin of about 13% for the first half of 2026.

The refinery’s gross profit has surged to ₦3.43 trillion in the first half of 2026, greatly up from just ₦343.4 billion for all of 2025. As of June 30, 2026, the total value of the company’s assets was ₦29.08 trillion.

Looking back at its financial history, the Dangote refinery first recorded revenue in 2024, totalling ₦9.38 trillion. Revenue grew to ₦18.74 trillion in 2025 and then rose to ₦19.13 trillion in the first half of 2026. Their profit situation has also changed dramatically: they lost ₦2.23 trillion in 2024, then ₦723.1 billion in 2025, before finally earning ₦2.50 trillion in the first half of 2026.

The results are also shown in US dollars for reference, showing that in the first half of 2026, the revenue was $13.91 billion, and the profit after tax was $1.82 billion.

However, it’s important to note that the refinery carries a significant amount of debt. As of June 30, 2026, its total debt was about $5.67 billion, all of which is secured borrowing. This is a decrease from a total of $6.24 billion in debt as of December 31, 2025, which included both secured bank loans and loans from its parent company, Dangote Industries Limited.

Additionally, the prospectus mentions that there are currently 14 legal cases underway as of August 26, 2026. Out of these, nine cases are significant enough, involving issues like unpaid debts and contract disputes, with claims totalling ₦4.08 billion and $216.12 million. The lawyers working on these cases believe that while the outcomes are uncertain, it’s unlikely any negative ruling will significantly impact the company’s financial stability or its ability to proceed with its initial public offering (IPO).

How the IPO will work, including bonus shares

The prospectus outlines how different investors can apply for shares in the Dangote Refinery’s IPO (Initial Public Offering).

All applications must be fully paid for at the time of submission. If there’s more demand than available shares, Dangote Refinery might offer an additional 30% of shares, subject to approval from the Securities and Exchange Commission (SEC), and the final allotment will depend on various factors, including the goal of having a diverse group of shareholders.

Retail investors have an added incentive: if they apply for and hold at least the minimum subscription for 12 months, they will receive one additional share for free, and if they continue to hold their shares for another year, they will get another free share, making a total of two free shares possible. Additionally, this IPO is not underwritten, meaning no financial institution is promising to buy any shares that aren’t sold.

Eligible African investors utilise specific distribution channels available in their countries, adhering to local laws.

Qualified investors can apply using an Investor Application Form; however, their applications must be for a minimum of 50,000 shares, which is approximately ₦26.25 million at ₦525 per share. Following the initial application, they can request shares in multiples of 10.

IPO timeline:

• The application period runs from September 14 to October 13.
• All applications will be reviewed, and results will be ready by October 27.
• The SEC will approve the allotment list by November 11.
• Successful applicants will have their accounts credited within 15 business days, and trading on the Nigerian Stock Exchange (NGX) will start 15 days after allotment.

The shares have been reviewed and assessed to be compliant with Shariah law; however, investors are encouraged to periodically verify this status. Vetiva Advisory Services Limited is the main firm managing the issuance, with support from other firms.

For Nigerians wanting to invest, the key points are straightforward: the IPO launches on September 14, shares are priced at ₦525 each, and the minimum investment is for 10 shares (₦5,250). Remember, investing in stocks comes with risks, so it’s important to fully understand what you’re getting into before making a decision.

This IPO will help the Dangote Refinery grow, aiming to double its production capabilities from 700,000 to 1.4 million barrels per day and transition it into a publicly traded entity.

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