Dangote Petroleum Refinery and Petrochemicals FZE has substantially cut its total borrowings to $5.67 billion as of June 30, 2026, down from $6.24 billion at the end of 2025. This reduction in debt comes as the company prepares for Africa's largest initial public offering, aiming to raise $1.6 billion. The IPO, which values the company at $49 billion, involves selling 4.1 billion shares at 525 naira ($0.40) each and is scheduled to open on September 14 and close on October 13.
The refinery's improved financial position is further highlighted by its impressive performance in the first half of 2026. Revenue more than doubled to $13.9 billion from $5.56 billion in H1 2025, marking a 149.9% increase in dollar terms. The company also swung from a loss to a net profit of $1.82 billion for the first half of 2026. This financial turnaround is attributed to the transition to stable, full-capacity production, with performance testing reaching 700,000 barrels per day by June.
The IPO is structured to attract a wide range of investors, including retail investors across Africa. Minimum subscription is set at 10 shares, or ₦5,250, aiming to include as many as 10 million investors. While some analysts observe a potential sell-down of existing holdings by investors looking to participate, the unique nature of the refinery as the continent's largest midstream operation and its strong profitability make it a compelling investment. The offering will test the depth of Africa's capital markets and its ability to fund large industrial assets domestically, with further expansion plans to double capacity to 1.4 million barrels per day. The IPO price implies a $49 billion valuation, which is higher than the $40 billion valuation from a private placement just weeks prior, prompting investors to assess whether the ambitious growth plans justify the premium over institutional investors' pricing.
