Dangote Refinery to Use POS, Mobile Apps for Planned $1.5bn Share Offer
Africa’s largest refinery, the Dangote Refinery, is preparing to deploy Point-of-Sale (POS) terminals, fintech platforms and mobile technology to drive retail participation in what could become the biggest public offer in Africa.
Sources familiar with the planned transaction revealed that Nigerians across the world will be able to purchase shares in the refinery using POS machines, mobile phones and other digital channels, as long as they possess a valid Bank Verification Number (BVN).
The refinery, owned by Aliko Dangote, is expected to list on the Nigerian Exchange Group at a target valuation of about $50 billion, estimated at nearly N70 trillion using current exchange rates.
According to insiders, the refinery plans to target millions of retail investors within Nigeria and across Africa, with several fintech companies already engaged to provide the digital infrastructure needed for the public offer.
Sources involved in the transaction disclosed that agency banking networks and POS operators will also be utilised to improve financial inclusion and allow wider participation by everyday Nigerians.
“Nigerians with BVN in any part of the world should be able to participate in the offer,” one source reportedly said.
The planned public offering is estimated at around $1.5 billion, potentially making it the largest Initial Public Offering (IPO) ever undertaken on the African continent.
Industry insiders said the structure of the offer reflects Dangote Refinery’s intention to democratise investment opportunities by leveraging Nigeria’s fast-growing digital payment ecosystem and fintech penetration.
Reports suggest that about 10 per cent of the refinery may be offered to investors during the IPO, although sources familiar with the process insist that both the valuation and final offer size are still under consideration and could eventually be higher.
Some of the shares may also be reserved for foreign institutional investors who have reportedly shown strong interest in the transaction.
Global comparisons show that refinery valuations often depend on factors such as refining capacity, crude oil prices, product quality and market conditions.
For context, Valero Energy is currently valued at about $74 billion, while India’s Reliance Industries, which operates the massive Jamnagar refinery complex, is valued at over $190 billion.
The Dangote Refinery listing is widely regarded as one of the most anticipated listings on the Nigerian stock market and is expected to attract strong interest from both institutional and retail investors.
Earlier this year, Dangote confirmed plans to list part of the refinery on the stock exchange.
“We will list as much as possible, maybe 10 per cent or so,” he said at the time.
He also disclosed that the refinery intends to pay dollar-denominated dividends after the listing.
Advisers already appointed for the transaction include Stanbic IBTC Capital�, Vetiva Advisory Services
Dangote further revealed plans to expand into more resource-based industries across Africa as the conglomerate continues to deepen its presence on the continent.
