Dangote Petroleum Refinery and Petrochemicals has completed a landmark $2.5 billion private equity placement, described as one of the largest publicly disclosed primary equity raises in Africa, to support its expansion plans and strengthen its financial position.
The company announced on Thursday that the fundraising exercise attracted overwhelming investor interest, with the offer reportedly oversubscribed by 3.7 times its original size.
The successful placement resulted in the issuance and allotment of about $2.5 billion in new equity from a diverse group of African and international institutional investors, marking a major step in the refinery’s long-term growth strategy.
Chairman of Dangote Petroleum Refinery and President of Dangote Industries Limited, Aliko Dangote, said the investment would enhance the refinery’s capacity while supporting efforts to reduce Africa’s dependence on imported refined petroleum products.
“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.
According to the company, proceeds from the equity injection will be deployed toward expanding the refinery and petrochemical complex, improving its capital structure and creating greater financial flexibility for future investments.
The fundraising attracted participation from a wide range of investors, including international and African institutional investors, sovereign-backed investment bodies, development finance institutions and strategic partners.
Among the investors involved are the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by Afreximbank.
Dangote Petroleum Refinery said the strong investor participation reflected confidence in the company’s operational performance, future prospects and contribution to Africa’s energy sector.
Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, described the response from investors as a reflection of the company’s execution capacity and leadership strength.
“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 noted that the transaction represents its first external equity capital raise beyond its original shareholder base, describing it as a significant milestone in its funding strategy.
With the fresh capital, Dangote Petroleum Refinery said it is positioned to accelerate the expansion of its refining and petrochemical operations, enhance Africa’s energy security and deliver long-term value to investors.
