Breaking: Dangote Refinery valued at $39.1 billion in private placement

The Dangote Petroleum Refinery has been valued at $39.1 billion as it seeks to raise fresh capital from investors through a private placement.

According to an Information Memorandum seen by Nairametrics, the refinery is offering 3 billion ordinary shares at a placement price of $0.35 per share.

The transaction is expected to raise approximately $1 billion and has already attracted strong investor interest, with indications suggesting that the offer may be oversubscribed following the close of the indication-of-interest period.

Nairametrics understands from multiple sources that demand for the private placement already exceeds $2 billion.

The Information Memorandum shows that the refinery is offering 3 billion ordinary shares at $0.35 per share.

The offer implies a valuation of approximately $39.1 billion for the refinery, making it one of the most valuable privately held industrial assets in Africa.

According to the memorandum, the proceeds will be used to support ongoing expansion projects and general corporate purposes, with the fundraising exercise described as a key component of the refinery’s broader funding strategy.

The refinery’s $39.1 billion valuation reflects investor expectations regarding its strategic role in Nigeria’s energy sector and its growing influence across regional petroleum markets.

It also highlights the scale of the facility’s contribution to reducing Nigeria’s dependence on imported refined petroleum products.

The valuation further highlights investor confidence in the refinery’s ability to generate long-term value through domestic supply and regional exports.

The current capital raise forms part of the refinery’s broader expansion programme as it continues to strengthen its position in regional energy markets.

While the memorandum does not provide detailed project breakdowns, it indicates that the new funding will support continued growth initiatives.

The fundraising effort comes at a time when global investors are increasingly seeking exposure to large-scale infrastructure and industrial assets capable of generating foreign currency earnings.

The private placement is likely to renew speculation about a future public listing of Dangote Refinery.

Market observers view the transaction as a potential step toward broadening the company’s shareholder base ahead of any future listing.

With indications suggesting that demand has already exceeded the targeted raise, the transaction could rank among the most significant private capital raises in Nigeria’s corporate history while serving as a key test of investor appetite for large-scale Nigerian industrial assets.