JSE courts Dangote Refinery for secondary listing after $5 billion NGX IPO

The Johannesburg Stock Exchange (JSE) is seeking a secondary listing for Dangote Petroleum Refinery after its planned $5 billion Initial Public Offering (IPO) on the Nigerian Exchange (NGX). The refinery wants fresh funds to expand its Lagos operations and has already become a major exporter of refined petroleum products.

JSE Chief Executive Officer Valdene Reddy confirmed the exchange's interest in an interview with CNBC Africa. She said Dangote Refinery is expected to list in Nigeria first, then pursue a secondary listing in Johannesburg. The move highlights the refinery's growing influence across Africa and intensifying competition among African stock exchanges to attract high-value companies.

JSE wants Africa's biggest refinery

Reddy described Dangote Refinery as a high-profile African company with scale, strong investor appeal, and a continental footprint. She said: "They will go and list in Nigeria first but with a strong intent to hopefully bring that listing to South Africa shortly thereafter on the JSE. It would be a great opportunity for diversified play of high demand but of such a strong African corporate listing on the JSE."

She added that the JSE's pipeline also includes companies in mining, financial technology, real estate, and construction. The refinery's planned IPO, estimated at about $5 billion, is widely projected to become the largest public offering ever undertaken on the African continent.

A record-breaking IPO with broad interest

The listing has already generated significant interest from investors and stock exchanges across Africa. Bourses in Kenya, Egypt, Ghana, and Rwanda are reportedly monitoring the transaction in the hope of securing future cross-listings. A private share placement linked to the IPO was also said to have attracted overwhelming investor demand.

The refinery is seeking fresh capital to finance the expansion of its Lagos facility, increase refining capacity to about 1.4 million barrels per day, and accelerate its wider African growth strategy.

Strained relations and the JSE's pursuit

The JSE's interest comes against the backdrop of strained commercial relations between South Africa and Nigerian businesses in recent months. South Africa has faced criticism over stricter immigration measures and enforcement actions that have affected foreign-owned businesses, including enterprises operated by Nigerians.

Despite these tensions, the JSE's pursuit of Africa's largest refinery shows its determination to attract major investments and strengthen its capital markets. For Nigerian businesses and the naira, the listing could boost investor confidence in the NGX and bring foreign capital flows into the local market.