Dangote Petroleum Refinery is heading for what could be Africa’s biggest-ever stock market offering after reporting a record N19.13 trillion ($13.91 billion) in first-half revenue, giving investors a compelling earnings story to weigh against its ambitious valuation
Revenue more than doubled, surging 121.46 percent from N8.64 trillion a year earlier, as the refinery moved into stable, full-capacity production across its processing units from March. Throughput climbed further during June, when the facility achieved performance-testing rates of as much as 700,000 barrels a day
The stronger operating performance translated into a dramatic improvement in profitability. Gross profit jumped to N3.43 trillion in the first half from N225.2 billion a year earlier. Net profit reached $1.82 billion, while earnings before interest, taxes, depreciation and amortisation stood at $2.60 billion
The results provide a substantial earnings foundation for Dangote Refinery’s planned initial public offering, which is set to become one of the largest equity offerings ever seen on the continent
The company is preparing to offer 4.1 billion ordinary shares at N525 each, seeking to raise N2.15 trillion between Sept. 14 and Oct. 13. If completed, the offering would dwarf previous equity listings on the Nigerian Exchange and give the market its largest new
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The numbers provide tangible support for the refinery’s targeted valuation of between $40 billion and $50 billion. Dangote Refinery reported N3.43 trillion in gross profit in the first half, compared with N225.2 billion a year earlier. Net profit was $1.82 billion, while earnings before interest, taxes, depreciation and amortisation stood at $2.60 billion
The sharp increase in revenue was driven by both higher volumes and higher realised prices. Premium motor spirit sales nearly doubled to about 6.06 million metric tons from 3.09 million tons in the first half of 2025, while the average realised price rose to about $975 a ton from $723
Automotive gas oil volumes increased to 2.86 million tons from 1.76 million tons, while the average realised price jumped to $1,225 from $688. Jet-fuel sales climbed to about 3.02 million tons from 2.06 million tons, with the average realised price rising to $1,092 from $663
That combination of higher production and stronger pricing has transformed the investment case around the world’s largest single-train oil refinery. The company is no longer asking investors to fund a project whose economics depend largely on future production. It is coming to market with a track record of substantial revenue and profit generation
“The Offer is intended to broaden public ownership of the enterprise and support its long-term growth strategy through the expansion of its refining and petrochemicals capacity,” Futureview Research analysts said
Of the refinery’s 120.13 billion ordinary shares, Dangote Oil Refining Company owns 79.09 billion, or 65.83 percent, while Dangote Industries holds 17.90 billion, or 14.90 percent. Greenview International Corporation owns 7.80 billion shares, NNPC holds 8.19 billion and other investors hold 7.15 billion
The IPO is also set to reshape the Nigerian Exchange
Dangote Refinery’s pre-listing market capitalisation is N63.07 trillion. At the offer price, its post-listing capitalisation would rise to N65.22 trillion, adding roughly N2.15 trillion to the value of the NGX if all the new shares are admitted
The company has applied to the NGX board for the listing and admission of the offer shares to the Daily Official List
“Nigeria’s capital market has the capacity to mobilise long-term capital at scale and play a much bigger role in financing the country’s growth. We have made significant progress in strengthening market infrastructure, improving the efficiency of capital formation and using technology to broaden access and investor participation,” Temi Popoola, group managing director and chief executive officer of NGX Group, said
The offering comes at an opportune moment for Nigeria’s capital market. The country is returning to the FTSE Russell Frontier Market universe this month, potentially increasing its visibility among international investors. Popoola said the priority was now to turn that visibility into broader participation, deeper liquidity and more capital for Nigerian businesses
A Pan-African Refinery Investment SPV, a Mauritius-incorporated special-purpose investment vehicle formerly known as India Infra Buildco, has already committed to subscribe for as much as $400 million of the offer. That represents about 1.04 billion shares, or as much as 25.34 percent of the offering
For retail investors, the company is offering another incentive to stay invested. Subject to regulatory approvals, investors who subscribe for at least the minimum amount and maintain that holding for 12 months from the allotment date will be eligible for one additional incentive share at no cost
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“The growing emphasis on long-term retail participation is encouraging because a strong capital market should not only mobilise institutional capital; it should also give more Nigerians the opportunity to participate in and benefit from the growth of productive businesses,” Popoola said
The IPO is not simply about monetising the refinery’s recent performance. The bulk of the money raised will go back into the business
After estimated offer costs of N41.49 billion, or 1.93 percent of gross proceeds, Dangote Refinery expects to have about N2.11 trillion available for capital expenditure tied to its expansion programme. The proceeds are intended to expand its refining and petrochemical capacity and position the company to capture rising demand for petroleum and petrochemical products
The first-half numbers were helped by the transition to higher utilisation and increased sales volumes, but realised prices were also a major contributor, particularly for automotive gas oil and jet fuel. Investors will therefore have to distinguish between growth generated by higher utilisation and that driven by commodity prices
That distinction could become increasingly important once Dangote Refinery is publicly traded
The exchange says the valuation is ultimately for investors and the market to determine. Its more immediate objective is to use a transaction of this size to deepen liquidity, expand the investable universe and attract greater domestic and international participation
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