Dangote Petroleum Refinery and Petrochemicals FZE, DPRP has successfully raised approximately $2.5 billion through a landmark private equity placement, in what is believed to be Africa’s largest publicly disclosed primary equity private placement.
The transaction marks the company’s first equity funding round involving external investors outside its legacy shareholder base, reflecting strong investor confidence in the refinery’s long-term growth strategy and operational performance.
According to the company, proceeds from the capital raise 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 equity offering attracted 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.
President and Chief Executive of Dangote Industries Limited and Chairman of DPRP, Aliko Dangote, described the successful placement as a major milestone in the company’s growth.
“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,” he said.
Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the strong investor interest reflects confidence in the company’s operations and future prospects.
“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,” Bird said.
The company said the successful equity placement positions the refinery to accelerate its long-term expansion plans while reinforcing its role in strengthening Africa’s energy security through increased refining and petrochemical capacity.
It also expressed appreciation to its professional advisers and partners for their contributions to the successful completion of the transaction.