Dangote Refinery IPO Opens September 14: N525 a Share, N5,250 Minimum

Dangote Petroleum Refinery & Petrochemicals FZE will open its public equity offer on September 14, 2026, selling 4.1 billion new ordinary shares at N525 each to raise N2.1525 trillion in gross proceeds. The offer closes on October 13, 2026, ahead of a proposed listing on the Nigerian Exchange.

Retail investors can enter with a minimum of N5,250, which buys 10 shares. Additional applications must come in multiples of 10.

What exactly is on offer

The transaction is an Offer for Subscription, not a sale by existing holders. Dangote Refinery is issuing 4.1 billion new shares, so the money goes to the company. The prospectus says the offer aims to broaden public ownership, diversify the investor base and support long-term growth.

Anyone allotted the minimum 10 shares becomes a shareholder once the allotment is valid. The new shares rank equally with existing ordinary shares, giving holders exposure to dividends and to post-listing price movements. Neither return is guaranteed.

How to apply

Applications go through approved electronic channels listed in the prospectus. These include NGX Invest, bank platforms such as Access Bank, Ecobank, Fidelity Bank and FirstBank, and investment or fintech platforms including Meritrade, Bamboo, PiggyVest and Cowrywise, among others. A valid BVN is mandatory.

Normally, buying shares on the NGX requires a stockbroking account, a Clearing House Number (CHN) and a CSCS account. The prospectus encourages applicants to get these first, but it provides for first-timers who do not have them. Successful applicants without valid CHN and CSCS details will be allotted through a Registrar Identification Number (RIN), a temporary number used to warehouse allotted shares under the registrar's custody at the CSCS. The shares move to the investor's stockbroking account once valid CHN and CSCS details are supplied. Not having a CSCS account does not block a first-time investor.

Oversubscription and allotment

Paying does not guarantee getting everything you ask for. The base offer is 4.1 billion shares, but Dangote Refinery may absorb up to 30% additional oversubscription with SEC approval. That could lift the maximum to about 5.33 billion shares.

A Full-Allotment Threshold will be set. All valid applications at or below it get their full request. Remaining shares go to larger applications under an SEC-approved Basis of Allotment and may be scaled back. Allocation may also weigh the need for a broad shareholder base and post-listing liquidity. Where less is allotted than requested, surplus money plus accrued interest or profit is expected back within five business days of the Allotment Date.

Dangote still controls the company

Total share capital is 125.48 billion shares. Before the recent private placement, 112.98 billion shares were issued and fully paid. The company then raised about $2.5 billion in a two-tranche private placement, issuing 7.148 billion new shares and taking issued shares to 120.13 billion.

The 4.1 billion-share IPO would raise issued shares to about 124.23 billion if fully allotted. The base offer is only about 3.3% of the enlarged company.

Pan-African Refinery Investment SPV has committed to subscribe for up to the naira equivalent of $400 million, about 1.039 billion shares or 25.34% of the IPO, subject to allotment. If fully taken up, about 3.061 billion shares would remain for other investors, 74.66% of the offer but only about 2.46% of the enlarged company.

Aliko Dangote beneficially owned about 104.83 billion shares, or 87.27%, before the IPO. If the base offer is fully subscribed and he buys nothing extra, that falls to about 84.4%. Ownership broadens without control changing.

Where the money goes

Dangote plans to add another 700,000 barrels per day, taking refining capacity towards 1.4 million barrels per day. The prospectus puts the expansion at about $14.27 billion, or N19.46 trillion at the prospectus rate of N1,364/$.

Net IPO proceeds of N2.111 trillion will fund only part of that, covering refinery equipment, utilities, infrastructure and construction. The balance is expected from internally generated cash flow and financing including debt, trade and project finance.

At N525 a share, the refinery would be valued at about N65.22 trillion after the base IPO. CardinalStone's peer comparison suggests that price is not particularly cheap, so investors should weigh the valuation against earnings before subscribing.