Di Dangote Petroleum Refinery and Petrochemicals FZE, wey dem know as DPRP, don set to become di single largest company for Nigerian Exchange Limited (NGX) when e go public next month. Di listing go value Africa biggest single-train refinery at N65.22 trillion, and e go push NGX market capitalization go N225 trillion.
According to di prospectus wey BusinessDay see, di refinery go sell 4.1 billion ordinary shares to di investing public at fixed price of N525 per share. Dis one go raise gross proceeds of N2.15 trillion, wey be about $1.6 billion, and e rank among di largest capital-raising exercises for Nigeria capital market history.
Aliko Dangote, chairman of DPRP Board and founder of Dangote Industries Limited, talk at di IPO signing ceremony on Monday, September 7, say dis transaction na defining moment for di company and di continent. E say di refinery na world-class project wey go transform Nigeria energy landscape and strengthen Africa energy security. E also say di IPO dey open ownership of dis strategic asset to broader community of investors, especially Nigerians.
Di offer go open on 14 September 2026 and close on 13 October 2026, so investors get four weeks to apply. Once di transaction complete, di refiner market capitalization go rise from N63.07 trillion pre-listing to N65.22 trillion at listing, wey be increase of about N2.15 trillion. Di NGX market cap as at Monday September 7 na N160.6 trillion.
Vetiva Advisory Services Limited na di lead issuing house, working with over twenty joint issuing houses, including FirstCap Limited, Stanbic IBTC Capital Limited, Chapel Hill Denham Advisory Limited, and many odas. Di offer no dey underwritten, so di issuer dey rely on im own distribution and anchor commitment.
One anchor investor, Pan-African Refinery Investment SPV, wey dem formerly know as India Infra Buildco, don commit to subscribe up to $400 million, wey be about 1.04 billion shares. Di prospectus also show Retail Investor Incentive Programme wey go give bonus shares to retail investors wey hold dia shares for twelve months and twenty-four months.
Di proceeds wey remain after costs, wey dem estimate at N41.49 billion, about 1.93 percent of gross proceeds, go be about N2.1 trillion. Dis money go support growth capital expenditure for di refinery expansion programme. Di company currently get refining capacity of about 700,000 barrels per day and e plan to add another 700,000 bpd, doubling output. Di expansion go complete by 2029 and go cost about $14.3 billion.
Minimum subscription na 10 shares, wey cost N5,250. Retail investors must apply through licensed stockbroker or designated electronic channel. Qualified investors wey dey use Investor Application Form go apply for at least 50,000 shares. If oversubscribed, di issuer fit absorb up to 30 percent more shares, subject to SEC approval.
Abiola Rasaq, former head of investor relations and portfolio investments at United Bank for Africa Plc, say di N525 price dey imply valuation of about N65 trillion, or $48 billion. But e say if dem use traditional refinery valuation benchmark of $15,000 to $30,000 per barrel of capacity for current 700,000 bpd, di refinery go worth at most $21 billion. E adjust am to $23.1 billion, or about N31 trillion, which dey far below di IPO price. E draw comparison with Dangote Cement Plc 2010 listing.
Research analysts at Meristem talk say di size of di offer and refinery strategic weight go draw strong participation from retail and institutional investors. Dem point to di 270 percent oversubscription for di July private placement as early signal of appetite. Dem also note say di listing go introduce another large-cap constituent for NGX and go lift aggregate market cap.
