Dangote Petroleum Refinery and Petrochemicals (DPRP) has successfully raised approximately $2.5 billion through a private placement of new equity, marking what the company describes as Africa’s largest publicly disclosed primary equity private placement by value.
Gatekeepers News reports that in a statement issued on Thursday, the company said the fundraising exercise was 3.7 times oversubscribed relative to its initial offer, reflecting strong investor confidence in the refinery’s long-term growth strategy.
“Dangote Petroleum Refinery and Petrochemicals FZE (DPRP or the Enterprise) today announces the successful completion of its landmark Private Placement, which 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 statement said.
It added that the transaction represents a major milestone as it is the refinery’s first equity capital raise involving external investors beyond its legacy shareholder base.
According to the company, the proceeds will be used to support the continued expansion of its refinery and petrochemical complex, strengthen its capital structure and provide greater financial flexibility for future growth initiatives.
The refinery said the offering attracted a broad mix of African and international institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners.
Among the key investors were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank).
“The offering attracted strong participation from a diverse group of international and African institutional investors, sovereign-related investment vehicles, development finance institutions and long-standing strategic partners, including Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), alongside a broad mix of institutional and individual investors, underscoring deep and diversified market confidence in DPRP’s long-term strategy,” the statement added.
President and Chief Executive Officer of Dangote Industries Limited and Chairman of the refinery, Aliko Dangote, described the transaction as a strategic move to broaden and institutionalise the company’s shareholder base while complementing existing cash flows and external financing needed to support its expansion plans.
“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.
Managing Director and Chief Executive Officer of Dangote Refinery, David Bird, said the overwhelming investor demand reflects confidence in the company’s operations, leadership and long-term vision.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership,” Bird said.
“Following completion of the Private Placement, DPRP is well positioned to continue executing its long-term growth strategy while strengthening Africa’s energy security through world-scale refining and petrochemical capacity.”
Bird added that the successful fundraising further strengthens the refinery’s platform for sustainable long-term value creation and acknowledged the contributions of the company’s professional advisers in executing the transaction.
