Dangote Petroleum Refinery and Petrochemicals has successfully raised $2.5 billion through a private placement, marking one of the biggest equity fundraising deals in Africa and a major milestone in the company’s expansion plans.
In a statement released on Thursday, the refinery announced that the private placement was 3.7 times oversubscribed, reflecting strong investor confidence in the company’s long-term growth strategy.
“The private placement achieved 3.7 times subscription relative to the initial offer size and resulted in the issuance and allotment of approximately US$2.5 billion in new equity,” the company said.
According to the refinery, the transaction is believed to be Africa’s largest publicly disclosed primary equity private placement by value.
The company explained that this is the first time external investors outside its existing shareholder base have participated in its equity fundraising, describing it as a significant step in strengthening its long-term funding strategy and supporting the growth of Africa’s capital markets.
The proceeds from the fundraising will be used to expand the refinery and petrochemical complex, strengthen the company’s financial position and provide additional flexibility for future investments.
Among the major investors in the private placement were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank).
The refinery said the offer also attracted strong participation from international and African institutional investors, development finance institutions, sovereign-related investment vehicles and strategic partners.
Commenting on the achievement, Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited and Chairman of the refinery, described the fundraising as an important step toward broadening the company’s shareholder base while supporting its expansion agenda.
“This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity, reducing Africa’s reliance on imported refined products and strengthening the continent’s energy security,” Dangote said.
Also speaking, the Managing Director and Chief Executive Officer of the refinery, David Bird, said the overwhelming investor response reflects confidence in the company’s operations and future.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership,” Bird said.
He added that the successful capital raise has positioned the refinery to continue executing its long-term growth strategy while contributing to Africa’s energy security through world-class refining and petrochemical production.
The company also expressed appreciation to its professional advisers and investors for their support in completing the landmark transaction.
