Dangote Refinery to utilize POS terminals, fintechs for landmark IPO

Africa’s largest refinery, the Dangote Refinery, is set to deploy Point-of-Sale (POS) terminals, fintech platforms, and mobile technology to drive retail participation in what is expected to become the largest public offer in Africa.

Reliable sources familiar with the transaction confirmed to Nairametrics that Nigerians across the world will be able to purchase shares in the refinery using POS machines, mobile phones, and other digital channels, provided they have a Bank Verification Number (BVN).

The refinery is expected to list on the Nigerian Exchange Group at a target valuation of about $50 billion, equivalent to roughly N70 trillion based on Nigeria’s average exchange rate.

What they are saying 

The refinery owned by Africa’s richest man, Aliko Dangote, is expected to target millions of retail investors across Nigeria and Africa.

According to information from people involved in the transaction, fintech companies with a major footprint across the country have already been engaged to provide the infrastructure that will allow investors to seamlessly purchase shares.

• Sources involved in the transaction told Nairametrics that fintech businesses are already being positioned to support the IPO distribution process across the country.
• They also disclosed that Dangote Refinery plans to leverage agency banking networks and POS operators to ensure financial inclusion and broaden retail investor participation.
• “Nigerians with BVN in any part of the world should be able to participate in the offer”, a source revealed to Nairametrics.
• However, it remains unclear how non-Nigerians, especially investors from other African countries, will participate in the offer.
• Nairametrics also understands that the proposed offer size is estimated at about $1.5 billion, potentially making it the largest public offering ever undertaken in Africa.

The planned structure highlights the refinery’s intention to democratize access to investment opportunities by leveraging Nigeria’s growing digital payments ecosystem and expanding fintech penetration.

More Insights 

A recent Bloomberg report suggested that the refinery could be valued at approximately $50 billion, with around 10% expected to be offered to investors through the IPO.

However, sources with direct knowledge of the transaction informed Nairametrics that the valuation remains a working estimate and could ultimately be significantly higher.

They also suggest the 10% being mooted may include targeted offerings to foreign institutional investors who are also very eager to be part of the transaction.

• Industry checks indicate that refinery valuations globally typically range between $20,000 and $40,000 per barrel per day, depending on market conditions.
• Crude oil prices, product quality, supply-demand dynamics, and geographical location also play significant roles in determining valuation multiples.
• Sources familiar with the valuation process explained that most refineries globally are not standalone businesses and are often embedded within larger upstream and midstream operations.
• For example, oil majors such as Exxon Mobil, Shell, and Chevron own refining assets as part of diversified energy operations.

In comparison, Valero Energy Corporation, one of the world’s major refining companies, is currently valued at about $74 billion and trades at a price-to-earnings multiple of 18x. Similarly, Reliance Industries operates the Jamnagar refinery complex in India with a combined refining capacity exceeding 1.2 million barrels per day and is valued at about $192.6 billion, trading at a multiple of 22.9x.

What you should know 

The Dangote Refinery listing is regarded as one of the most anticipated listings on the Nigerian Exchange and is expected to attract significant investor participation from both institutional and retail investors.

• Back in April, Aliko Dangote disclosed that the listing is expected to involve “around 10 per cent of the company,” although final details are still being finalized.
• “We will list as much as possible, maybe 10 per cent or so,” Dangote said, without revealing the final valuation of the refinery.
• Dangote also stated that the refinery is expected to pay dollar-denominated dividends after the IPO.
• Advisers already appointed for the transaction include Stanbic IBTC Capital, Vetiva Advisory Services, and FirstCap.

Dangote also outlined plans to expand into additional resource-based industries across Africa, particularly in mineral-rich markets, as the conglomerate seeks to deepen its footprint across the continent.

Africa’s largest refinery, the Dangote Refinery, is set to deploy Point-of-Sale (POS) terminals, fintech platforms, and mobile technology to drive retail participation in what is expected to become the largest public offer in Africa.

Reliable sources familiar with the transaction confirmed to Nairametrics that Nigerians across the world will be able to purchase shares in the refinery using POS machines, mobile phones, and other digital channels, provided they have a Bank Verification Number (BVN).

The refinery is expected to list on the Nigerian Exchange Group at a target valuation of about $50 billion, equivalent to roughly N70 trillion based on Nigeria’s average exchange rate.

What they are saying 

The refinery owned by Africa’s richest man, Aliko Dangote, is expected to target millions of retail investors across Nigeria and Africa.

According to information from people involved in the transaction, fintech companies with a major footprint across the country have already been engaged to provide the infrastructure that will allow investors to seamlessly purchase shares.

• Sources involved in the transaction told Nairametrics that fintech businesses are already being positioned to support the IPO distribution process across the country.
• They also disclosed that Dangote Refinery plans to leverage agency banking networks and POS operators to ensure financial inclusion and broaden retail investor participation.
• “Nigerians with BVN in any part of the world should be able to participate in the offer”, a source revealed to Nairametrics.
• However, it remains unclear how non-Nigerians, especially investors from other African countries, will participate in the offer.
• Nairametrics also understands that the proposed offer size is estimated at about $1.5 billion, potentially making it the largest public offering ever undertaken in Africa.

The planned structure highlights the refinery’s intention to democratize access to investment opportunities by leveraging Nigeria’s growing digital payments ecosystem and expanding fintech penetration.

More Insights 

A recent Bloomberg report suggested that the refinery could be valued at approximately $50 billion, with around 10% expected to be offered to investors through the IPO.

However, sources with direct knowledge of the transaction informed Nairametrics that the valuation remains a working estimate and could ultimately be significantly higher.

They also suggest the 10% being mooted may include targeted offerings to foreign institutional investors who are also very eager to be part of the transaction.

• Industry checks indicate that refinery valuations globally typically range between $20,000 and $40,000 per barrel per day, depending on market conditions.
• Crude oil prices, product quality, supply-demand dynamics, and geographical location also play significant roles in determining valuation multiples.
• Sources familiar with the valuation process explained that most refineries globally are not standalone businesses and are often embedded within larger upstream and midstream operations.
• For example, oil majors such as Exxon Mobil, Shell, and Chevron own refining assets as part of diversified energy operations.

In comparison, Valero Energy Corporation, one of the world’s major refining companies, is currently valued at about $74 billion and trades at a price-to-earnings multiple of 18x. Similarly, Reliance Industries operates the Jamnagar refinery complex in India with a combined refining capacity exceeding 1.2 million barrels per day and is valued at about $192.6 billion, trading at a multiple of 22.9x.

What you should know 

The Dangote Refinery listing is regarded as one of the most anticipated listings on the Nigerian Exchange and is expected to attract significant investor participation from both institutional and retail investors.

• Back in April, Aliko Dangote disclosed that the listing is expected to involve “around 10 per cent of the company,” although final details are still being finalized.
• “We will list as much as possible, maybe 10 per cent or so,” Dangote said, without revealing the final valuation of the refinery.
• Dangote also stated that the refinery is expected to pay dollar-denominated dividends after the IPO.
• Advisers already appointed for the transaction include Stanbic IBTC Capital, Vetiva Advisory Services, and FirstCap.

Dangote also outlined plans to expand into additional resource-based industries across Africa, particularly in mineral-rich markets, as the conglomerate seeks to deepen its footprint across the continent.