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.

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 signaled could happen later ​this year.

REUTERS