Africa’s richest man eyes the JSE

The Johannesburg Stock Exchange has engaged with Nigeria’s Dangote Group and said the company could list its petroleum refinery in South Africa after a Nigerian IPO, a spokesperson told Reuters on Wednesday.

“They will list in Nigeria first but with strong intent to hopefully bring the listing to South Africa,” the JSE said in an emailed response to Reuters questions.

The company is aiming to raise $5 billion (R81.6 billion) in an initial public offering, Reuters reported on Tuesday.

Sources told Reuters that the group has made a preliminary filing with the Nigerian regulator for the refinery IPO, targeting an October listing.

One of the sources said the group wants regional capital markets to take part, with Kenya potentially raising $500 million.

Africa’s richest man, Aliko Dangote, built the refinery at a cost of roughly $20 billion. It started fuel production in 2024 and reached full capacity earlier this year.

The 650,000-barrel-per-day refinery is Africa’s largest, and Nigerian state oil firm NNPC holds a stake of just over 7%.

Standard Bank has revealed that it is playing a leading role in the IPO process, as one of the few African institutions with sufficient scale to facilitate the listing.

The listing of the Dangote Petroleum Refinery, valued at $50 billion (R825 billion), will put liquidity on exchanges across the continent to the test. 

As Africa’s largest lender by assets, Standard Bank is leading this process, with its Nigerian unit being the lead adviser for the IPO. 

Its Corporate and Investment Banking crown jewel will play the leading role in advising on the IPO’s structuring, execution, and marketing. 

The IPO is evidently important for the bank, as well as its broader relationship with Dangote Industries, which is led by Africa’s richest man, Aliko Dangote. 

Standard Bank CEO Sim Tshabalala recently travelled to Nigeria to tour Dangote’s refinery along with an army of senior executives. 

“We are here because the Dangote Group is a large and important global player and a significant force on the African continent,” Tshabalala said on the tour. 

“As the group continues to expand in Nigeria and across Africa, there will be opportunities for financial advisory services and balance sheet support, and we stand ready to provide both.”

Reporting with Reuters