Billionaire says planned expansion will double refinery capacity to 1.4 million barrels per day as Dangote Cement targets London listing…..
The long-awaited initial public offering of the Dangote Refinery is set to open within the next 10 to 12 days, according to the company’s Chairman and Chief Executive Officer, Aliko Dangote.
Dangote disclosed the timeline on Thursday while speaking with investors and analysts during a visit to Botswana.
The planned listing is expected to offer investors an opportunity to acquire at least a 10 percent stake in the refining business as the company moves to raise capital for its ambitious expansion plans.
The refinery previously announced plans for a Pan-African initial public offering as part of efforts to support a broader $40 billion investment and expansion drive.
The development comes shortly after the Dangote Refinery disclosed that it had secured a $1 billion underwriting commitment ahead of the planned IPO.
Speaking on the refinery’s future expansion, Dangote said the company’s objective was to significantly increase its production capacity.
He said the expansion would ultimately double the refinery’s capacity to 1.4 million barrels per day.
“So our dream is that we want to make sure we double the capacity of the refinery… which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” Dangote said.
The planned IPO is expected to become a major milestone for the refinery, which has grown into one of Africa’s largest oil-processing facilities since commencing operations.
Beyond the refinery, Dangote also provided an update on plans involving another major company within his business empire.
He said Dangote Cement’s proposed secondary listing on the London Stock Exchange (LSE) would most likely be completed in October.
The cement company is already taking steps towards the proposed listing, with plans to hold a capital markets day in London on September 21.
The event is expected to give investors and analysts an opportunity to engage with the company and gain further insight into its operations as preparations for the secondary listing continue.
Dangote is also expanding his business interests beyond Nigeria, with plans for a new refinery on Kenya’s coast.
The businessman said construction of the proposed East African refinery would be formally launched on September 30.
“We are launching it on September 30,” he said.
The project is expected to be developed in partnership with governments across East Africa.
Dangote had previously disclosed plans to replicate the Nigerian refinery model in East Africa, with the proposed facility expected to have a production capacity similar to the 650,000 barrels-per-day Dangote Refinery in Nigeria.
The initiative is being pursued with the backing of governments in the region as Dangote seeks to expand his energy business beyond Nigeria and strengthen refining capacity across Africa.
If completed as planned, the refinery IPO, the expansion of the Nigerian facility, the proposed London listing of Dangote Cement and the new East African refinery would mark another major phase in the billionaire’s push to expand his business interests across the continent.
