Dangote Petroleum Refinery has been valued at $39.1 billion in a private placement where it is seeking to raise about $1 billion.

According to an Information Memorandum, the refinery is offering 3 billion ordinary shares at $0.35 per share to investors. The minimum share subscription is pegged at a million shares, totalling $350,000, with additional subscriptions accepted in multiples of 500,000 shares. Investors are expected to hold the shares for a 365-day lock-up period from allotment.

The placement is expected to be oversubscribed. Nigerian billionaire Femi Otedola has committed $100 million, per multiple reports, which amounts to ten per cent of the raise. The proceeds from the placement will be used for expansion projects and general corporate purposes as the refinery deepens its role in Nigeria’s fuel supply market.

Dangote plans to sell between 5 and 10% of the refinery on five major African exchanges: the Nigerian Exchange (NGX), the Johannesburg Stock Exchange (JSE), the BRVM, the Nairobi Securities Exchange (NSE) and the Ghana Stock Exchange (GSE), per reports.