Nigeria’s Dangote Petroleum Refinery is seeking to raise about $1 billion through a private placement, valuing the company at approximately $39.1 billion, according to sources and a placement document.

The refinery is offering 3 billion ordinary shares at $0.35 per share, with investor demand already exceeding $2 billion, sources said.

Investors must subscribe to a minimum of 1 million shares ($350,000), with additional purchases in multiples of 500,000 shares. Shares will be subject to a 365-day lock-up period.

Proceeds will be used for expansion and general corporate purposes as the refinery ramps up operations and strengthens its market position, the document showed.

Public listing

The 650,000 barrels-per-day refinery, which began production in 2024, has expanded output across diesel, aviation fuel, naphtha and petrol, significantly reducing Nigeria’s reliance on imported refined products.

Dangote officials did not respond to a request for comment on the placement. Market participants expect further investments in logistics, storage and distribution infrastructure, alongside possible expansion into petrochemicals, according to the placement document.

The fundraising could pave the way for a future public listing, which billionaire owner Aliko Dangote has previously signalled could happen later this year.