Dangote Postpones IPOs of Fertilizer and Refinery Subsidiaries
TLDR
- Nigerian billionaire Aliko Dangote has postponed the initial public offerings (IPOs) of Dangote Fertilizer to Q4 2025 and Dangote Refinery to 2026
- The announcement was made during the Afreximbank Annual Meetings in June 2025. No reason was given for the revised timeline
- IPO proceeds will support debt repayment, especially for the refinery, which carries $3.65 billion in debt
Nigerian billionaire Aliko Dangote has postponed the initial public offerings (IPOs) of Dangote Fertilizer to Q4 2025 and Dangote Refinery to 2026, shifting from earlier plans for a dual listing beginning in early 2025. The announcement was made during the Afreximbank Annual Meetings in June 2025. No reason was given for the revised timeline.
The fertilizer plant, already operational and exporting urea, will be listed first. The $23 billion refinery, still ramping up production, will follow. Both projects are key to Nigeria’s goals of achieving energy and food self-sufficiency.
IPO proceeds will support debt repayment, especially for the refinery, which carries $3.65 billion in debt. Analysts estimate IPO valuations at $20–25 billion for the refinery and $2.5–3.5 billion for the fertilizer unit, pending market and debt conditions.
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Key Takeaways
The delay in Dangote’s IPOs comes amid macroeconomic headwinds, including 34% inflation, naira depreciation, and a B+ credit rating for Dangote Industries, downgraded by Fitch in 2024. Despite these challenges, the planned listings remain potentially transformative for the Nigerian Exchange (NGX). If both IPOs proceed as planned, they could lift NGX’s total market capitalization above ₦100 trillion ($60 billion), restoring Dangote Industries as the exchange’s top equity issuer, ahead of rival BUA Group. The fertilizer business offers a more stable cash flow, driven by export demand and a favorable global urea market. In contrast, the refinery’s revenue potential—up to $25 billion annually—hinges on meeting domestic production targets and managing debt. Investors will closely examine offering documents for clarity on timelines, operational milestones, and use of proceeds. Dangote has previously indicated a potential dual listing in London for the refinery. The international leg may help broaden the investor base, though currency and governance risks will be key concerns. As Nigeria navigates inflationary pressure and seeks to attract foreign capital, the success of these IPOs could set a new benchmark for domestic listings, investor confidence, and industrial-scale capital formation in West Africa.
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