Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has successfully raised approximately US$2.5 billion through a private equity placement, in what the company says is Africa’s largest publicly disclosed primary equity private placement by value.
In a statement issued on Thursday, July 23, the company said the transaction was 3.7 times oversubscribed, reflecting strong investor confidence in the refinery’s long-term growth strategy.
The capital raise marks the first time the enterprise has brought in external equity investors beyond its existing shareholder base, representing a significant milestone in its long-term funding strategy.
According to the company, proceeds from the private placement will be used to support the continued expansion of its refinery and petrochemical complex, strengthen its capital structure and provide additional financial flexibility for future growth initiatives.
The offering attracted investments from a broad range of international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners. Key participants included the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank).
Commenting on the transaction, President and Chief Executive Officer of Dangote Industries Limited and Chairman of DPRP, Aliko Dangote, described the equity raise as a strategic move to broaden the refinery’s shareholder base while complementing internal cash flows and external financing.
He said the funding would support the company’s expansion plans and reinforce its commitment to increasing Africa’s domestic refining and petrochemical capacity, reducing dependence on imported refined petroleum products and strengthening the continent’s energy security.
Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the strong investor demand reflected confidence in the refinery’s operational performance, execution capability and leadership.
The company said the successful completion of the transaction positions the refinery to continue implementing its long-term growth strategy while enhancing Africa’s refining capacity and creating long-term value for investors.
