Uganda has approved the marketing and distribution of shares in Dangote Petroleum Refinery and Petrochemicals to eligible investors in the country, expanding access to the Nigerian refinery’s $1.6 billion initial public offering across East Africa. Uganda’s Capital Markets Authority approved the offer on October 6 following an application submitted by Stanbic IBTC Capital on behalf of the refinery. Reuters reports that the approval allows investors in Uganda to participate in the IPO, which is seeking to raise about $1.6 billion through the sale of 4.1 billion shares at ₦525 each. The offer, which opened on September 14, is scheduled to close on October 13 and is being marketed as a “people’s IPO”.
However, Uganda has placed restrictions on how the Dangote Refinery shares can be marketed locally. The Capital Markets Authority has limited participation to high net worth individuals and professional investors and prohibited mass advertising or general public solicitation. The regulator has authorised SBG Securities Uganda Limited to market the offer and stressed that its approval does not constitute an endorsement or recommendation of the securities or their investment merits. The move follows Kenya’s approval earlier this week for eligible Kenyan investors to participate in the same IPO through a global depository receipt structure. Kenya’s Capital Markets Authority said the GDR arrangement would allow Kenyan investors to gain exposure to the Nigerian refinery without directly purchasing the underlying shares in Nigeria.
The widening regional access comes as Dangote Refinery seeks capital to support an ambitious expansion that would increase its crude processing capacity from about 700,000 barrels per day to 1.4 million barrels per day by 2029. The Lagos based refinery, constructed at a reported cost of about $20 billion and operational since 2024, has become a major supplier of refined petroleum products to Nigeria and international markets. The IPO is expected to provide part of the funding for the planned expansion, while Dangote has previously indicated that the company could eventually pursue an international listing. Uganda’s approval also carries wider significance for African capital markets, demonstrating how major companies can increasingly attract investment beyond their home markets as regulators develop mechanisms for cross border participation. Importantly, this IPO concerns the Nigerian Dangote refinery and is separate from Dangote’s proposed East African refinery project in Lamu, Kenya, which Uganda has also expressed support for as part of regional energy cooperation.
