LAGOS
Dangote Petroleum Refinery and Petrochemicals FZE said it has completed a $2.5 billion private equity placement, describing the transaction as Africa’s largest publicly disclosed primary equity private placement by value and saying proceeds will support the expansion of its refining and petrochemical operations.
The company said Thursday that the offering was 3.7 times oversubscribed relative to the initial offer size, resulting in the issuance and allotment of approximately $2.5 billion in new equity.
According to the company, the transaction marks its first equity capital raise involving external investors beyond its legacy shareholder base and represents a milestone in its long-term funding strategy.
“This transaction is believed to be Africa’s largest publicly disclosed primary equity private placement by value,” the company said in a statement, adding that the capital raise would “support DPRP’s ongoing expansion of the refinery and petrochemical complex, strengthen the Enterprise’s capital structure and provide additional financial flexibility for future growth initiatives.”
Dangote said the offering attracted a broad mix of international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners. Among those named were the Africa Finance Corporation and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank.
Aliko Dangote, president and chief executive of Dangote Industries Ltd. and chairman of Dangote Petroleum Refinery and Petrochemicals, said the fundraising would broaden the company’s investor base while supporting its growth plans.
“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,” Dangote said.
He added that the transaction “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.”
David Bird, managing director and chief executive officer of Dangote Petroleum Refinery and Petrochemicals, said investor demand reflected confidence in the business.
“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 it expects the new capital to strengthen its balance sheet and support its long-term growth strategy as it expands refining and petrochemical capacity. It also thanked its advisers for supporting the transaction.
