Dangote Petroleum Refinery and Petrochemicals has secured US$2.5 billion through a landmark private equity placement, providing fresh capital to accelerate the expansion of its refining and petrochemical operations while reinforcing its long-term growth strategy.
The company, in a statement, announced on Thursday that the equity offering attracted overwhelming investor interest, recording subscriptions of about 3.7 times the initial offer size.
The transaction, regarded as Africa’s largest publicly disclosed primary equity private placement by value, marks the first time the refinery has raised equity from investors outside its founding shareholder base.
According to the company, proceeds from the fundraising will be used to expand the refinery and petrochemical complex, strengthen its capital structure and enhance financial flexibility to support future investments.
The offering drew participation from a broad mix of African and international institutional investors, development finance institutions, sovereign-backed investment vehicles and strategic partners.
Among the notable investors were the Africa Finance Corporation, AFC, and India Infra Buildco, an investment platform facilitated by the African Export-Import Bank, Afreximbank, alongside several institutional and individual investors.
President and Chief Executive of Dangote Industries Limited and Chairman of the refinery, Aliko Dangote, described the successful capital raise as a major milestone in broadening the company’s shareholder base and mobilising additional resources to complement existing funding sources.
He said the investment would further strengthen the company’s drive to expand domestic refining and petrochemical production, reduce Africa’s dependence on imported petroleum products and improve the continent’s energy security.
Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, attributed the strong investor response to confidence in the company’s operational performance, execution capability and long-term growth prospects.
The company added that the successful completion of the transaction positions the refinery to pursue its expansion plans, deepen value creation for investors and contribute to the continued development of Africa’s capital markets.
It also expressed appreciation to its financial and professional advisers for their roles in concluding the transaction successfully.
