By David Akinmola
Investors have committed about N1.5 trillion to the initial public offering (IPO) of Dangote Petroleum Refinery in the first hour of trading, signalling strong market appetite for equity in Nigeria’s largest private-sector industrial project.
The strong demand came shortly after the offer opened on the Nigerian Exchange (NGX), with investors scrambling to take positions in the refinery as the company seeks to raise substantial fresh capital from the domestic capital market.
The development represents a major test of investor appetite for large-scale industrial assets at a time when the Nigerian equities market is undergoing significant repositioning and investors are increasingly seeking opportunities in companies with strong earnings potential and strategic importance to the economy.
The Dangote Refinery IPO is offering 4.1 billion shares at N525 per share, translating to an offer size of about N2.15 trillion if fully subscribed.
The offer, which opened on September 14, is scheduled to close on October 13, with the shares expected to commence trading on the NGX later in the year, subject to regulatory processes.
The strong first-hour subscription has heightened expectations that the offer could be fully subscribed well before the closing date and potentially trigger significant interest in the secondary market once the shares are listed.
The refinery, located in Lekki, Lagos, has a current production capacity of 650,000 barrels per day and is positioned as a major component of Nigeria’s strategy to reduce dependence on imported petroleum products and strengthen domestic refining capacity.
The company has also announced plans to expand its capacity to about 1.4 million barrels per day by 2029, a move that would further increase its significance to Nigeria’s energy security and foreign exchange position.
The strong investor response also comes against the backdrop of the refinery’s improved financial performance. The company reported a profit after tax of about $1.82 billion in the first half of 2026, compared with a loss of $476 million in the corresponding period of 2025.
Analysts said the performance, combined with the refinery’s strategic position in the downstream petroleum market, could have strengthened investor confidence in the offer.
The IPO is expected to deepen the Nigerian capital market by providing investors with direct exposure to one of the country’s most significant industrial assets while potentially increasing the market capitalisation and liquidity of the NGX.
For the Federal Government, the successful listing could also demonstrate the capacity of Nigeria’s domestic capital market to mobilise substantial long-term funds for large-scale infrastructure and industrial investments.
The development comes days after heightened volatility on the equities market, with investors repositioning portfolios ahead of the refinery offer.
The Nigerian Exchange had recorded a N1.88 trillion decline in market capitalisation on September 8 amid broad-based selling pressure, as investors adjusted their positions ahead of the Dangote Refinery IPO.
The first-hour response to the offer, however, suggests that investors have not lost their appetite for equities, but are increasingly selective about where they deploy capital.
The strong demand could also reinforce the growing role of Nigeria’s capital market in financing private-sector expansion, particularly as companies seek alternatives to bank borrowing amid elevated interest rates.
With the offer still open, market watchers will now be looking to see whether the early surge in demand is sustained and whether the IPO ultimately achieves full subscription before the October 13 closing date.
