The Johannesburg Stock Exchange (JSE) has expressed strong interest in securing a secondary listing for Dangote Petroleum Refinery once the company completes its planned $5 billion Initial Public Offering (IPO) on the Nigerian Exchange (NGX). This move highlights the refinery's growing influence across Africa and comes despite recent tensions over South Africa's stricter immigration policies that have affected Nigerian-owned businesses.
JSE targets Dangote after Nigeria listing
Speaking in an interview with CNBC Africa, JSE Chief Executive Officer Valdene Reddy disclosed that Dangote Refinery is expected to list in Nigeria first before pursuing a secondary listing in Johannesburg. According to her, the refinery represents the kind of high-profile African company the exchange is eager to attract because of its scale, strong investor appeal, and continental footprint.
Reddy said: "They will go and list in Nigeria first but with a strong intent to hopefully bring that listing to South Africa shortly thereafter on the JSE. It would be a great opportunity for diversified play of high demand but of such a strong African corporate listing on the JSE." She added that the JSE's pipeline also includes companies operating in mining, financial technology, real estate, and construction.
IPO expected to break African records
Dangote Refinery's planned IPO, estimated at about $5 billion, is widely projected to become the largest public offering ever undertaken on the African continent. The listing has already generated significant interest from investors and stock exchanges across Africa, with bourses in Kenya, Egypt, Ghana, and Rwanda reportedly monitoring the transaction in the hope of securing future cross-listings. A private share placement linked to the IPO was also said to have attracted overwhelming investor demand.
The refinery is seeking fresh capital to finance the expansion of its Lagos facility, increase refining capacity to about 1.4 million barrels per day, and accelerate its wider African growth strategy. Already a major exporter of refined petroleum products, the company aims to solidify its position as a key player in the global energy market.
South Africa courts Nigerian investment despite business tensions
The JSE's interest in Dangote Refinery comes against the backdrop of strained commercial relations between South Africa and Nigerian businesses in recent months. South Africa has faced criticism over the implementation of tougher immigration measures and stricter enforcement actions that have affected foreign-owned businesses, including enterprises operated by Nigerians. These policies have contributed to the exit of some Nigerian-owned businesses from the South African market.
Despite these challenges, the JSE's pursuit of Africa's largest refinery highlights the country's determination to attract major investments and strengthen its capital markets. The move could also improve liquidity for investors and further cement Dangote Refinery's position as one of Africa's most valuable industrial assets. Competition among African stock exchanges to attract high-value companies is intensifying, and the JSE is keen to secure a stake in this landmark listing.
Industry analysts note that a secondary listing on the JSE would provide Dangote Refinery with access to a broader investor base and enhance its credibility in international markets. It would also signal South Africa's commitment to fostering cross-border investment despite political friction. As the refinery prepares for its historic IPO, all eyes are on how the listing will reshape the continent's financial landscape.
