Uganda’s Capital Markets Authority (CMA) has approved domestic investors to participate in the Dangote Petroleum Refinery’s initial public offering (IPO), according to a statement published on X late Tuesday. The approval, granted to Stanbic IBTC Capital Limited on behalf of the refinery, marks another milestone in what is being marketed as Africa’s largest-ever share sale and opens a new East African gateway to the landmark transaction.
The $1.6 billion IPO, launched in September by Africa’s richest man, Aliko Dangote, aims to fund a doubling of the refinery’s processing capacity from 700,000 barrels per day (bpd) to 1.4 million bpd. The offer of 4.1 billion shares at 525 naira each opened on September 14 and is scheduled to close on October 13, with trading on the Nigerian Exchange expected to begin in late November.
The Dangote refinery was built by Dangote Group over a period of ten years at a cost of approximately $20 billion. Located on the outskirts of Lagos, the facility began operations in 2024 and has since fundamentally reshaped Nigeria’s fuel market. The refinery processes 700,000 barrels of crude daily and exports refined products to markets across Africa, Europe, and beyond.
The plant’s financial transformation has been striking. After posting a net loss of $476 million for the full year 2025, the refinery reported a net profit of $1.82 billion in the first half of 2026 on revenue exceeding $13 billion. This turnaround was driven by elevated refining margins amid global supply disruptions, with the refinery’s gross refining margin reaching $24.50 per barrel in H1 2026 compared to $13.70 per barrel in 2025.
Dangote has positioned the offering as a “people’s IPO,” designed to democratize wealth creation by allowing ordinary Africans to own a stake in the continent’s largest industrial asset. The minimum subscription is just 10 shares, translating to roughly $4, a remarkably low threshold that has generated significant retail interest.
The IPO values the refinery at approximately $49 billion, with the public offer representing about 3.3% of enlarged share capital. The transaction follows a July private placement that raised $2.5 billion for a 6% stake, valuing the company at $40 billion at that time. This means retail investors are paying a premium of roughly 13% compared to institutional investors who participated in the private placement.
Proceeds from the IPO will support a $14.3 billion expansion program aimed at doubling refining capacity to 1.4 million bpd within three years. Chief Executive Officer David Bird has stated the expansion remains on track, leveraging the same plans and contractors used for the original facility.
The approval by Uganda’s CMA follows Kenya’s decision earlier this week to clear a Global Depositary Receipt (GDR) structure that allows Kenyan investors to participate in the IPO through the Nairobi Securities Exchange. This represents Kenya’s first use of its GDR framework and positions the country as a hub for cross-border capital raising. Several licensed Kenyan firms are facilitating participation through correspondent arrangements with Nigerian transaction parties.
The cross-border dimension of the Dangote IPO has exposed both the promise and limitations of African capital market integration. While the African Exchanges Linkage Project has technically connected 11 exchanges, cross-border trading volumes remain minimal. As of January 2026, the linkage platform had recorded just 21 transactions worth a combined $8,670. Regulatory differences, foreign exchange controls, and settlement infrastructure continue to constrain seamless continental investment flows.
