Uganda Opens Door to Dangote’s $1.6 Billion IPO, but Not to Retail Investors

Uganda’s wealthy individuals and professional investors have gained access to Dangote’s roughly $1.6 billion refinery share sale, while the general public remains excluded. The Capital Markets Authority has approved distribution of the offer in Uganda, according to Nile Post Uganda (direct). The decision opens another regional route into the Nigerian business, but puts strict limits on who can be approached and how the investment can be sold.

Dangote Petroleum Refinery and Petrochemicals FZE is offering 4.1 billion shares at 525 Nigerian naira each through an initial public offering, or IPO—a sale of shares to investors ahead of stock-market trading. It aims to raise about 2.2 trillion naira, equivalent to roughly $1.6 billion. Part of the proceeds will fund expansion of its refinery near Lagos, while the offering will also broaden the company’s capital base. The offer opened in September and is scheduled to close on October 13, with trading expected in November.

Access comes with tight controls

Uganda’s approval followed an application from Stanbic IBTC Capital Limited on the company’s behalf. Nigeria’s Securities and Exchange Commission had already approved the offering and its prospectus, the document setting out the investment’s terms and risks. Uganda’s CMA also exempted the refinery from certain local regulatory requirements, subject to conditions. It barred advertising or solicitation aimed indiscriminately at the public, restricting distribution to high-net-worth individuals and professional investors.

Every intermediary handling marketing, distribution or approaches to prospective Ugandan investors must hold a CMA licence and first obtain the regulator’s written clearance. As of October 6, SBG Securities Uganda Limited had permission to market and offer the securities. CMA said it would announce any further intermediary approvals. That leaves eligible investors with access only through authorised channels, rather than an unrestricted public offer.

The regulator also drew a firm distinction between allowing distribution and backing the investment. It said it had not endorsed the prospectus or assessed the project’s commercial merits, financial viability or likely performance. Investors face risks from currency fluctuations, market movements, arrangements for holding their securities and taxation when investing in a foreign market.

CMA said its approval was not an endorsement or recommendation of either the IPO or the investment merits of the shares.

Refinery expansion drives the fundraising

Owned by billionaire Aliko Dangote, the refinery began commercial operations in 2024 after roughly a decade of construction costing an estimated $20 billion. Its current crude-processing capacity is about 700,000 barrels a day, with expansion under way towards 1.4 million barrels a day. The Lekki Free Trade Zone complex combines refining with petrochemicals, storage, power generation and marine infrastructure. It produces petrol, diesel, aviation fuel and polypropylene, and is a major part of Nigeria’s effort to curb reliance on imported fuels.

The Ugandan decision follows clearance in Kenya for eligible investors to participate through global depository receipts, instruments representing shares. Regional interest also extends beyond the Lagos facility. On October 5, Ugandan President Yoweri Museveni joined Kenyan President William Ruto and Dangote at the groundbreaking for a proposed $16 billion refinery and petrochemicals project in Lamu, Kenya. Museveni said it should complement planned refineries in Uganda and Tanzania.

The next milestones are the scheduled October 13 offer close and expected start of trading in November. In Uganda, attention will also turn to whether CMA authorises more intermediaries. For now, the regulator has opened a tightly controlled investment channel—not a general invitation to the public.