By Barbara Nwaiwu
Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has successfully completed a private equity placement that raised approximately $2.5 billion in new equity, marking what is believed to be Africa’s largest publicly disclosed primary equity private placement by value.
The company announced the successful transaction on Thursday, saying the offering attracted demand 3.7 times higher than the initial offer size, resulting in the issuance and allotment of about $2.5 billion in new equity.
The equity raise marks the refinery’s first funding round involving external investors beyond its legacy shareholder base, reflecting growing investor confidence in the company’s long-term growth strategy and operational performance.
According to the company, proceeds from the placement will be used to support the continued expansion of the refinery and petrochemical complex, strengthen its capital structure and improve financial flexibility to pursue future growth opportunities.
The offering drew participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, strategic partners and individual investors.
Among the notable investors were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), highlighting broad-based confidence in the refinery’s long-term prospects.
President and Chief Executive Officer of Dangote Industries Limited and Chairman of DPRP, Aliko Dangote, described the transaction as a major step in the company’s growth strategy.
“This transaction represents 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.”
“It also demonstrates our unwavering commitment to developing Africa’s refining and petrochemical capacity, reducing dependence on imported 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 response reflected confidence in the company’s operations and leadership.
“The exceptional demand we witnessed is a testament to our operational excellence, execution capability and the confidence investors have in DPRP’s leadership and future potential.”
The company said the successful completion of the placement positions it to accelerate its long-term growth strategy while strengthening Africa’s energy security through expanded world-scale refining and petrochemical capacity. It also acknowledged the contributions of its professional advisers and partners whose support helped deliver the transaction successfully.
