Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has raised $2.5 billion through a private equity placement, described as the largest publicly disclosed primary equity private placement in Africa.
The company said the offering was oversubscribed 3.7 times its initial target, leading to the issuance and allotment of approximately $2.5 billion in new equity.
The transaction marks the refinery’s first capital raise involving investors beyond its existing shareholder base and is expected to strengthen its long-term funding strategy while contributing to the development of African capital markets.
Investors in the placement included the Africa Finance Corporation, India Infra Buildco, an investment vehicle arranged through the African Export-Import Bank, as well as other international and African institutional investors, sovereign-linked funds and development finance institutions.
According to DPRP, the funds will be used to expand its refinery and petrochemical complex, strengthen its capital structure and provide additional financial capacity to support future growth.
Chairman of DPRP and President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, said the transaction would help deepen and institutionalise the company’s shareholder base while complementing internally generated cash flow and external financing.
DPRP Managing Director and Chief Executive Officer, David Bird, said the strong investor demand demonstrated confidence in the company’s management and execution strategy.
The company said it would continue with its expansion plans, describing the capital raise as an important step towards strengthening Africa’s energy security by increasing refining and petrochemical production capacity.
