By Seun Ibiyemi
Dangote Petroleum Refinery and Petrochemicals FZE has raised approximately $2.5 billion in a landmark private equity placement, completing what it described as Africa’s largest publicly disclosed primary equity private placement by value.
The company said the transaction attracted overwhelming investor interest, with subscriptions reaching 3.7 times the initial offer size, underscoring strong confidence in the refinery’s operations and long-term growth prospects.
The equity raise marks the refinery’s first external capital injection from investors outside its legacy shareholder base, representing a significant milestone in its long-term funding strategy and the development of Africa’s capital markets.
According to the company, the offering drew participation from a broad range of international and African institutional investors, sovereign-linked investment vehicles, development finance institutions and strategic partners.
Among the major participants were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), alongside several retail and institutional investors.
Dangote Refinery said proceeds from the equity issuance would be deployed to finance ongoing expansion projects across its refinery and petrochemical complex.
The company added that the fresh capital would strengthen its balance sheet, optimise its capital structure and provide greater financial flexibility to execute future growth initiatives aimed at enhancing regional energy security.
Commenting on the transaction, President and Chief Executive of Dangote Industries Limited and Chairman of the refinery, Aliko Dangote, described the fundraising as a strategic milestone.
“This transaction is 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 said.
Dangote added that the investment reinforces the company’s commitment to expanding Africa’s domestic refining and petrochemical capacity, reducing dependence on imported petroleum products and strengthening the continent’s energy security.
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Also speaking, the Managing Director of Dangote Petroleum Refinery, David Bird, said the strong investor appetite reflected confidence in the refinery’s operational performance and management team.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity and investor confidence in DPRP’s leadership,” Bird said.
Following the successful completion of the transaction, the refinery said it remains well positioned to implement its long-term operational strategy and expand world-class refining capacity across Africa.
The company also expressed appreciation to its financial and professional advisers for their role in delivering the record-breaking private equity placement.
The fundraising comes as the Dangote Refinery continues to expand its operations, positioning itself as a key player in Africa’s drive for energy security and industrial development.
