Another African Country Opens up Dangote Refinery IPO to Investors as $1.6 billion Share Sale Expands

Another African country has opened its market to Dangote Petroleum Refinery’s $1.6 billion initial public offering (IPO), expanding access to the landmark Nigerian share sale beyond its home market.

Uganda’s Capital Markets Authority has approved investors in the East African country to participate in the Dangote Refinery IPO.

Reuters reports that the approval covers the offer of securities under the IPO and followed an application submitted on behalf of the refinery by Stanbic IBTC Capital. However, access is limited to professional and high-net-worth investors.

The move comes as Dangote seeks to raise about ₦2.15 trillion ($1.6 billion) through the sale of 4.1 billion shares at ₦525 each.

Nigeria’s Securities and Exchange Commission in September, had approved the offering, making it Africa’s largest share sale to date. The proceeds are expected to help fund the refinery’s planned expansion to 1.4 million barrels per day.

Dangote Refinery CEO David Bird has also set an ambitious target of 10 million retail investors for the offering.

In an earlier report, Business Insider Africa reported that Bird said the refinery is using Saudi Aramco’s 2019 IPO as a benchmark, when more than 4.5 million retail investors subscribed.

Why access was initially restricted to Nigeria

The IPO was initially domiciled in Nigeria rather than being simultaneously offered across several African markets.

Uganda’s President Yoweri Museveni, Aliko Dangote and Kenya’s President William Ruto at the groundbreaking ceremony for Dangote’s oil refinery in Lamu, Kenya. (Image: REUTERS/Monicah Mwangi)REUTERS/Monicah Mwangi

The IPO was initially structured as a Nigerian offer, while Dangote’s advisers held discussions with several African markets, including Kenya, South Africa, Egypt, Ghana and Rwanda, over ways to facilitate participation by investors outside Nigeria.

That position has since begun to change. Kenya became the first additional market to formally approve an access route, with its Capital Markets Authority approving a short-form prospectus for a global depositary receipt that allows eligible Kenyan investors to participate in the Nigerian IPO.

The approval also enables licensed Kenyan firms working with Nigerian counterparts to facilitate participation.

Uganda has now followed, although its approval is narrower because participation is limited to professional and high-net-worth investors. The Ugandan approval comes just days after Kenya opened its own route into the offer.

The broader regional push is still developing. South Africa, Egypt and Ghana have held discussions with Dangote’s advisers over participation in the IPO, while Rwanda is working toward facilitating access for eligible investors.

Their inclusion highlights the broader ambition of turning a Nigerian share sale into a more accessible African investment opportunity, even as regulators and market operators work through the cross-border requirements.