JSE pursues Dangote Refinery listing after planned $5B Nigeria IPO

The Johannesburg Stock Exchange JSE Limited is actively pursuing a secondary listing of Dangote Petroleum Refinery following the company's planned initial public offering on the Nigerian Exchange, in what could become the largest public offering ever undertaken in Africa.

JSE Chief Executive Officer Valdene Reddy confirmed on Wednesday that the exchange has been in discussions with the Dangote Group, saying the company will "list in Nigeria first, but with a strong intent to hopefully bring that listing to South Africa shortly thereafter on the JSE."reuters+1

The refinery is targeting a $5 billion raise and has made a preliminary filing with Nigeria's market regulator, with an October listing on the horizon, according to Reuters. Sources told Reuters that the group wants regional capital markets to participate, with Kenya potentially contributing $500 million in capital.reuters

Africa's Largest Refinery Goes Public

Africa's richest man, Aliko Dangote, built the 650,000-barrel-per-day refinery at a cost of roughly $20 billion. Located in the Lekki Free Trade Zone near Lagos, the facility started producing fuel in 2024 and has since ramped up to full capacity, making it Africa's largest refinery. Nigeria's state oil company NNPC already owns just over 7% of the refinery.finimize+2

The company is seeking fresh capital through the IPO to support expansion at its Lagos complex and finance broader regional growth initiatives.businessday

A Test for African Capital Markets

A dual listing would broaden the refinery's investor base by providing access to South Africa's deeper institutional capital markets, including pension funds and global emerging-market portfolios that benchmark against JSE indices. Reddy highlighted the liquidity gap between the two exchanges, noting the JSE records average daily trading volumes of between $1.5 billion and $2 billion, compared with roughly $10 million to $20 million on the Nigerian stock market.streamlinefeed+1

The offering has attracted interest from several African exchanges beyond South Africa, including those in Kenya, Egypt, Ghana, and Rwanda. Financial analysts say the float is shaping up as a test of whether African capital markets can jointly finance large homegrown infrastructure projects rather than relying on foreign lenders.businessday+1

"It would be a great opportunity for a diversified play of high demand but of such a strong African corporate listing on the JSE," Reddy told CNBC Africa.businessday