Emmanuel Obi
Dangote Petroleum Refinery and Petrochemicals has completed a landmark private equity placement that raised approximately $2.5 billion in new equity, marking what the company described as Africa’s largest publicly disclosed primary equity private placement by value.
The company said the offer was 3.7 times oversubscribed relative to its initial size, reflecting strong investor confidence in the refinery’s long-term growth strategy and operations.
According to a statement issued on Thursday, the capital raise represents the refinery’s first equity fundraising involving external investors beyond its legacy shareholder base.
The proceeds will be used to support the ongoing expansion of the refinery and petrochemical complex, strengthen its capital structure and provide additional financial flexibility for future growth initiatives.
The offering attracted a broad mix of international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners.
Among the key participants were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank).
President and Chief Executive of Dangote Industries Limited and Chairman of Dangote Petroleum Refinery, Aliko Dangote, described the transaction as “a strategic step to deepen and further institutionalise the Enterprise’s shareholder base, while raising capital to complement our internal cash flows and external funding, as DPRP advances its expansion agenda.”
He added: “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.”
Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the level of investor interest reflected confidence in the company’s operations.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership,” Bird said.
The company said the successful capital raise positions it to continue executing its long-term growth strategy while strengthening Africa’s energy security through increased refining and petrochemical capacity.
It added that the strong investor response underscores confidence in its strategy and enhances its platform for long-term value creation.
