Aliko Dangote has nearly completed a $2.5 billion private stock placement for his refinery business, according to people familiar with the matter, as the company prepares for Africa’s largest initial public offering.

Africa’s richest person sold a stake representing as much as 6% of Dangote Petroleum Refinery & Petrochemicals FZE at a pricing that would value the company at about $40 billion, one of the people said, asking not to be identified discussing confidential matters.

The fundraising comes ahead of a planned IPO that could raise an additional $1.5 billion to $2 billion, with a public listing expected as early as August.

Business Insider Africa previously reported that Dangote intends to list the refinery on the Nigerian Exchange as part of a broader effort to deepen local participation in one of Africa's most strategic industrial assets.

The billionaire has consistently advocated for greater African ownership of major infrastructure projects, a strategy reflected in the strong participation of regional investors during the private placement.

The refinery also recently secured $750 million through a debt offering, further strengthening its capital base.

The 650,000 barrels-per-day refinery, ‌which began production in 2024, has expanded output across diesel, aviation fuel, naphtha and petrol, significantly reducing Nigeria's reliance on imported refined petroleum products.

The latest fundraising will help finance an ambitious expansion that aims to more than double the refinery's processing capacity to 1.4 million barrels per day by 2028, positioning it among the world's largest refining complexes.

Dangote is also considering building a refinery in Kenya worth between $15 billion and $17 billion as part of efforts to reduce Africa's reliance on imported petroleum products.

The proposed facility, with an estimated processing capacity of up to 700,000 barrels of crude oil per day, would become the largest refinery in East Africa if completed.