Omanghana
Dangote Petroleum Refinery and Petrochemicals reduced its secured debt by $570 million during the first half of 2026 as the company prepares for what could become Africa’s largest initial public offering.
The reduction lowered the company’s total secured debt from $6.24 billion to $5.67 billion, supported by stronger operations and improved financial performance at the $20 billion refinery.
Dangote Refinery recorded an after-tax profit of $1.82 billion for the first six months of 2026, marking a significant recovery from the $476 million net loss reported during the corresponding period in 2025.
The improvement was attributed largely to increased operational throughput and stronger earnings from refinery activities.
Higher production also helped reduce the company’s net debt-to-earnings before interest, taxes, depreciation and amortization ratio to 0.27 times at the end of the second quarter of 2026.
The lower ratio suggests that the refinery has strengthened its capacity to meet its financial obligations from operating earnings as it prepares to enter the public capital market.
The company plans to offer 4.1 billion ordinary shares at ₦525 each, equivalent to approximately $0.40 per share.
The base offer is expected to raise about ₦2.15 trillion, or $1.6 billion, subject to regulatory approval and market conditions.
The order book is scheduled to open on September 14, 2026, and close on October 13, 2026. The company is targeting a final listing on the Nigerian Exchange in November.
If investor demand exceeds the number of shares initially offered, the transaction could be expanded by as much as 30 per cent, subject to approval from Nigeria’s Securities and Exchange Commission.
Exercising the oversubscription option could increase the total amount raised to approximately $2.1 billion.
The planned offer has also been structured to attract smaller retail investors. The minimum subscription has been fixed at 10 shares, costing ₦5,250, or about $4.
Investors are expected to be able to purchase shares digitally through participating financial technology and mobile money platforms, including Moniepoint, MTN MoMo, Bamboo, Airtel Smartcash and Flutterwave.
The digital distribution strategy is intended to make the offering accessible to a broader section of the public, including first-time retail investors.
Dangote Refinery currently has a reported processing capacity of 700,000 barrels of crude oil per day. Its operations have increased Nigeria’s domestic supply of petrol, diesel, aviation fuel and other refined petroleum products while supporting exports to other markets.
The company is also planning a major expansion program valued at $14.3 billion, which is expected to double processing capacity to 1.4 million barrels per day by 2030.
If completed, the expansion would further strengthen the facility’s position among the world’s largest single-site refineries.
The planned IPO represents a major stage in the development of the refinery, giving the public an opportunity to acquire shares while providing additional capital for expansion and other corporate priorities.
The offer could also deepen activity on the Nigerian Exchange and strengthen investor interest in the country’s energy and industrial sectors. However, the final size and timing of the transaction will remain subject to regulatory approvals and prevailing market conditions.
Source: Omanghana
