Renaissance Capital Africa (RCA) has raised its valuation of Dangote Petroleum Refinery and Petrochemicals FZE to N700.41 in step with percentage, representing a possible 33.4 in step with cent upside from the refinery’s preliminary public providing (IPO) value of N525 in step with percentage.
The funding analysis company attributed the revised valuation to more potent refining margins and better-than-expected monetary and operational efficiency within the first 9 months of 2026, with income, profits ahead of passion, taxes, depreciation and amortisation (EBITDA), and web benefit all exceeding its projections.
In an replace on the weekend titled: “More potent Refining Margins Power Income Outperformance,” RCA highlighted the refinery’s powerful profits enlargement and bettering monetary place as key components underpinning its extra positive evaluate.
For the 9 months ended September 30, 2026, Dangote Petroleum Refinery reported income of $22.5 billion and web benefit of $4.7 billion, marking a vital turnaround from the $117.2 million loss recorded within the corresponding length of 2025.
Earnings greater via 144 in step with cent from $9.2 billion within the previous yr, whilst EBITDA surged just about nine-fold to $5.5 billion from $627.6 million.
The refinery’s running money float additionally rose greater than ten-fold to $3.68 billion, reflecting its increasing capability to generate money from operations amid more potent refining margins and advanced efficiency.
The enhanced profits translated right into a more potent stability sheet, with the corporate shifting from a web debt place of $1.73 billion as of September 2025 to a web money place of $651 million via September 2026.
The shift, along the more potent money float, it stated, issues to an growth within the refinery’s liquidity and monetary resilience because it consolidates its place within the home and world petroleum merchandise markets.
RCA’s revised valuation gives a extra bullish evaluate of the refinery’s possibilities following its robust nine-month efficiency.
On the other hand, the projected upside will depend on the sustainability of refining margins, running efficiency and broader marketplace prerequisites.
In the meantime, Dangote Petroleum Refinery & Petrochemicals on Sunday introduced that its ongoing Preliminary Public Be offering (IPO) has attracted overwhelming participation from buyers throughout Africa and the worldwide funding neighborhood, with subscriptions won from greater than 90 international locations, together with buyers from 51 of Africa’s 54 countries.
The dimensions and geographical unfold of participation make the transaction Africa’s first actually pan-African public providing, demonstrating increasing self belief in African-led commercial construction and an expanding urge for food amongst Africans to take possession of strategic belongings constructed at the continent.
Dangote Refinery disclosed this in a remark, announcing the be offering has already rewritten the file books, turning into the most important public providing ever introduced within the Nigerian capital marketplace on its opening day and surpassing the former African file inside of its first ten days.
It stated the success has been pushed via robust call for from retail buyers, pension price range, institutional buyers, asset managers, fintech platforms, and participants of the making an investment public.
A supply just about the control of Dangote Petroleum Refinery described the milestone as a defining second for Africa’s capital markets and financial long term.
“This providing is excess of a capital-raising workout. It represents a ancient alternative for Africans and international buyers to take part immediately within the possession of some of the continent’s maximum transformative commercial belongings. The spectacular participation from buyers throughout Africa displays a shared trust that Africans must no longer simply eat some great benefits of industrialisation but in addition personal the belongings that pressure it and percentage within the wealth they invent,” the supply stated.
The exceptional investor reaction comes amid the refinery’s robust operational and monetary efficiency.
In line with the supply, the refinery’s present efficiency has considerably outpaced the assumptions utilized in arriving on the IPO valuation.
“The refinery’s monetary and operational efficiency has stepped forward considerably past the baseline assumptions underpinning the IPO. The mix of scale, potency, marketplace succeed in and operational momentum continues to create considerable worth for shareholders and reinforces self belief within the corporate’s long-term enlargement trajectory”, the supply stated.
The transaction has additionally sped up the combination of African capital markets thru pioneering cross-border collaborations involving Botswana, Egypt, Ethiopia and Kenya, serving to to simplify participation and develop investor get right of entry to around the continent.
Control stated it perspectives the IPO as an impressive demonstration of the increasing sophistication, intensity and interconnectedness of African capital markets, whilst additionally offering a template for long term continent-wide funding choices.
The refinery reiterated that the IPO gives buyers a singular alternative to take part within the possession of one among Africa’s greatest and fastest-growing commercial enterprises, with the potential of USD-linked dividends, matter to the corporate’s dividend coverage and acceptable regulatory approvals.
With the be offering scheduled to near on 27 October 2026, the corporate has intensified investor schooling and engagement actions throughout key markets to make sure broader inclusion and participation. It additionally emphasised that no additional extension of the be offering length is lately envisaged.
Talking additional at the importance of the transaction, the supply just about control mentioned:
“We’re witnessing the emergence of a brand new technology in African commercial possession and capital-market construction. The atypical reaction from buyers throughout 51 African international locations and greater than 90 countries world wide is an impressive vote of self belief in Africa’s long term and within the talent of world-class African enterprises to generate sustainable long-term worth for shareholders.”
Dangote Petroleum Refinery expressed appreciation to regulators, issuing homes, stockbrokers, monetary establishments, fintech companions, investor associations, neighborhood leaders and the making an investment public for his or her strengthen and participation all the way through the be offering length.
Emmanuel Addeh and Peter Uzoho
Practice us on: