51 African Nations Join Dangote Refinery IPO As Valuation Hits N700.41
Quick Reads:
- Investors from 51 of Africa’s 54 nations have subscribed to Dangote Refinery’s IPO, with applications from more than 90 countries worldwide.
- Renaissance Capital Africa raised its valuation to N700.41 per share, 33.4% above the N525 offer price.
- The offer closes October 27, with share allotment expected to be cleared on November 17.
Investors from 51 of Africa’s 54 nations have subscribed to the Dangote Refinery IPO, with subscriptions arriving from more than 90 countries worldwide, the company said. It called the offer the first truly pan-African public offering, helped by cross-border collaboration involving Botswana, Egypt, Ethiopia and Kenya.
The interest comes as Renaissance Capital Africa raised its valuation of the refinery to N700.41 per share, 33.4% above the N525 offer price, in a note dated October 16. That is a 13.1% increase on its earlier N619.47 estimate, driven by stronger refining margins and a beat on revenue, EBITDA and net profit in the first nine months of 2026.
The IPO covers 4.1 billion new shares at N525 each, with a minimum purchase of 10 shares, or N5,250. After counting the net IPO proceeds of N2.11 trillion and the new shares, Renaissance Capital’s figure is N694.28 per share, a 32.2% premium.
The refinery’s balance sheet has also shifted, moving from net debt of $1.73 billion in September 2025 to net cash of $651 million by September 2026.
Valuation Is An Opinion, Not A Promise
Investors should weigh the caveats. Renaissance Capital expects the unusually wide refining margins to narrow, and its target implies 8.61 times 2026 EBITDA, a premium to peers that it attributes to the refinery’s scale and low cash operating costs.
Subscriptions are not allotments. The offer closes on October 27, the Securities and Exchange Commission is expected to clear allotment on November 17, and trading should begin about 15 business days later. Only then will the market show how it prices the stock against Renaissance Capital’s target.
