Dangote Petroleum Refinery & Petrochemicals FZE is targeting about $5bn through an Initial Public Offering expected to conclude in October, with the proceeds earmarked to expand its Lagos refinery’s capacity to 1.4 million barrels per day.

According to a Reuters report on Tuesday, the proposed transaction could become Africa’s biggest-ever stock market listing.

Sources familiar with the transaction said the refinery had submitted an initial application to the Securities and Exchange Commission and was awaiting regulatory approval in the coming weeks, according to The PUNCH.

Subject to approval, the company is expected to publish its prospectus in September ahead of the October share sale.

According to the report, one source familiar with the transaction said the refinery is aiming to raise about $5bn, although the final amount will depend on the level of approval.

“The IPO’s target was $5bn, but the final figure will depend on what the Nigerian regulator approves, as the primary listing will be on the Nigerian Stock Exchange,” the source said.

If successful, the fundraising would represent just over four per cent of the Nigerian Exchange’s All-Share Index, which had a market capitalisation of about $116bn as of Tuesday.

The refinery, owned by Africa’s richest man, Aliko Dangote, intends to use the proceeds to expand its refining capacity as it seeks to reduce Africa’s reliance on imported refined petroleum products and strengthen the continent’s position as a net fuel exporter.

According to the sources, the company is also exploring plans to build a refinery along Kenya’s coast in partnership with governments in East Africa.

The proposed IPO has generated significant interest across African capital markets, with stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda reportedly holding discussions with the refinery’s advisers in recent months.