The Johannesburg Stock Exchange (JSE), Africa’s largest exchange by market capitalisation at R25.2 trillion (approximately $1.53 trillion) is preparing to host a secondary listing of Dangote Petroleum Refinery (DPR) after its planned primary Nigeria Exchange Group’s $5 billion initial public offering (IPO) listing, according to reports monitored by Business A.M.
Interests are growing steadily across the African continent ahead of what could arguably become Africa’s biggest initial public offerings to date.
Dangote Group plans to raise about $5 billion through an initial public offering slated for October. Reports say preliminary filing has been submitted to the Nigerian Securities and Exchange Commission (SEC), the regulator of stocks in the country.
Reports said there is growing pan-African investor interest. Kenya is expected to play a significant role in the share sale, with institutional investors, including pension funds contributing as much as $500 million—about 10 percent of the targeted fundraising. Also, negotiations are ongoing with investors in Egypt, Ghana, and Rwanda.
JSE, Africa’s stock exchange titan, awash with capital, is preparing to have a stake in the pie offered by Dangote Petroleum Refinery, with primary listing in the Nigerian bourse.
The JSE confirmed it has been in discussions with the Dangote Group, saying the company intends to pursue a listing in Nigeria first before exploring a secondary listing in South Africa.
A JSE spokesperson told Reuters: “They will list in Nigeria first but with strong intent to hopefully bring the listing to South Africa”.
With a total market capitalisation of about ZAR 25.2 trillion (approximately USD 1.53 trillion), JSE accounts for about 60 percent of Africa’s total equity market value, and the continent’s largest stock exchange.
DPR, now upgraded to 700,000 barrels per day (bpd) was built by Aliko Dangote, Africa’s richest man, for $20 billion. It began production in 2024. Earlier this year, it reached full operating capacity, and has become one of Africa’s most valuable private industrial assets.
The planned refinery IPO listing would enable the Dangote Group to raise $5 billion for the refinery. According to sources familiar with the IPO said the company has already made a preliminary filing with Nigeria’s securities regulator and is targeting an October debut on the Nigerian Exchange.
Discussions have also taken place with regulators and market participants in Egypt, Ghana and Rwanda to explore avenues investors in these countries can take part in the upcoming landmark offering, indicating the DPR’s increasing appeal as a pan-African investment opportunity.
Dangote refinery with total investment value of $20 billion, is also partly-owned by the Nigerian National Petroleum Company (NNPC), which holds seven percent equity of the refining facility.
Today, the refinery’s value has risen to around $40 billion following a recent private placement after investors acquired a six percent stake for $2.5 billion. This valuation positions the refinery among Africa’s most valuable privately-owned industrial assets to date.
