The $1.6 billion initial public offering (IPO) of Nigeria’s Dangote refinery has attracted purchase orders equivalent to nearly three times the volume initially targeted, reflecting strong investor appetite for the transaction, according to two sources cited by Reuters.

The share sale, which closed on Tuesday (27), had already recorded orders worth $64.78 billion from Nigerian retail and institutional investors, according to one of the sources involved in the process.

Aliko Dangote, the owner of the Lagos-based refinery, aims to extend equity participation in the company to millions of ordinary citizens in Nigeria and across Africa. The minimum investment announced is $4.

Demand could rise further once subscriptions from investors in other African markets are included. One source indicated that Dangote had already received expressions of interest from more than two million investors through digital channels.

Given the strong demand, the company is expected to exercise an overallotment option — known in the market as a greenshoe — which could increase the total size of the transaction to as much as $2.1 billion. A Dangote spokesperson declined to comment on demand levels or the possible use of this mechanism.

The offering comes at a favourable juncture for Dangote Petroleum Refinery and Petrochemicals FZE, which has benefited from higher refining margins. Rising crude oil prices, partly driven by the conflict involving Iran, have contributed to improved financial results.

Since beginning commercial operations in early 2024, the refinery has gradually increased production and expanded exports, including the supply of aviation fuel to European and African markets. This trajectory reinforces Nigeria’s prospects of establishing itself as a net exporter of refined petroleum products.

According to the IPO prospectus, share allocation to investors is expected to begin next week, ahead of the planned listing on the Nigerian Stock Exchange, still scheduled for November.

Built at a cost of approximately $20 billion, the refinery has been reshaping Nigeria’s fuel market. The facility currently processes around 700,000 barrels of crude oil per day and aims to double its capacity to 1.4 million barrels per day by 2029.