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Dangote Refinery Seeks $1.6 Billion in Nigeria's Biggest IPO

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Billionaire Aliko Dangote is seeking to raise about $1.6 billion through an initial public offering of shares in the company operating Africa's largest oil refinery, in what would be Nigeria's biggest IPO, multiple news outlets reported on Friday.

Dangote Petroleum Refinery and Petrochemicals will offer 4.1 billion shares at 525 naira ($0.40) each. The offering is scheduled to open Sept. 14.

Nigeria's Securities and Exchange Commission reportedly approved the share sale on Friday.

The IPO values the refinery at about $49 billion, and proceeds of the sale will help finance plans to nearly double the facility's capacity from 700,000 barrels a day.

The offering comes as Nigerian equities surge, with the benchmark index up 72% in dollar terms this year, making it the world's best-performing stock market, Bloomberg said.

The Dangote refinery cost $20 billion to build, according to Chemical & Engineering News. It reached full capacity just weeks before the start of the conflict in the Middle East which heightened concerns over global fuel supplies.

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