Nigeria's Dangote refinery looks to raise $1.6 bn in IPO

A Nigerian oil refinery owned by Africa's richest man is preparing an initial public offering expecting to raise $1.6 billion, the company said Friday, in what could be one of the country's biggest-ever stock launches.

Lagos-based Dangote Petroleum Refinery is aiming to raise funds to double its capacity to 1.4 million barrels a day, which would make it the world's largest refinery, surpassing Jamnagar in India.

When it goes public, the group will offer "4.1 billion ordinary shares at 525 naira each, which could raise approximately 2.15 trillion naira ($1.6 billion) if fully subscribed", the company said in a statement.

The listing is expected on September 14, according to a company official.

Nigeria is Africa's leading crude producer.

The country's Securities and Exchange Commission has approved the launch of the IPO, "paving the way for what could become one of the largest capital market transactions in Nigeria's history", the company said.

In July, the mega-refinery secured $2.5 billion in investment from private investors to fund its expansion plans as it widens its refining business to east Africa.

Dangote is planning to build a 700,000-barrel-per-day east African oil refinery in Lamu, on the Kenyan coast.

Groundbreaking for that refinery will take place on September 30, an official confirmed.

In July, company founder Aliko Dangote, whose net worth is estimated at $31.5 billion by Forbes, said the firm is aiming to reduce "Africa's reliance on imported refined products" and strengthen the "continent's energy security".

Africa currently imports more than 70 percent of its refined fuel and around $230 billion worth of essential goods, including food, plastics, steel and fertiliser each year, Africa Finance Corporation (AFC) said in a report in April.