Dangote Petroleum Refinery and Petrochemicals has announced the successful completion of a landmark private equity placement, raising approximately $2.5 billion to support the expansion of its refinery and petrochemical complex.
The company disclosed this in a statement on its official X page on Wednesday, describing the transaction as Africa’s largest publicly disclosed primary equity private placement by value.
According to the refinery, the offering was 3.7 times oversubscribed compared to the initial offer size, reflecting strong investor confidence in the company’s long-term growth strategy.
The fundraising marks the first time Dangote Petroleum Refinery has raised equity capital from external investors beyond its existing shareholder base, a move the company said represents a major milestone in its long-term funding strategy and the continued development of African capital markets.
The company said proceeds from the private placement would be used to finance the ongoing expansion of its refinery and petrochemical facilities, strengthen its capital structure and provide greater financial flexibility for future growth initiatives.
The statement noted that the transaction attracted broad participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners, including the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank).
Commenting on the development, President and Chief Executive of Dangote Industries Limited and Chairman of Dangote Petroleum Refinery and Petrochemicals, Aliko Dangote, described the fundraising as a significant step in broadening the company’s shareholder base.
“This 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,” Dangote said.
He added: “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.”
Also speaking, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the strong investor interest reflected confidence in the company’s operations and leadership.
“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 stated that the successful capital raise positions the refinery to continue implementing its long-term expansion plans while reinforcing Africa’s energy security through increased refining and petrochemical capacity
