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Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has successfully raised approximately $2.5 billion through a major private equity placement, marking what is believed to be Africa’s largest publicly disclosed primary equity private placement.
The company announced yesterday that the transaction attracted overwhelming interest from local and international investors, underscoring strong confidence in the refinery’s long-term growth strategy, operational performance and expansion plans.
The equity placement represents the first time the refinery has raised capital from external investors outside its legacy shareholder base, a move the company said reflects its growing status as a world-class energy and industrial enterprise.
According to the company, proceeds from the capital raise will be used to finance the continued expansion of the refinery and petrochemical complex, strengthen its capital structure and improve financial flexibility to support future growth opportunities.
The offering drew broad 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), highlighting broad-based investor confidence in the refinery’s long-term prospects.
Commenting on the successful transaction, President and Chief Executive of Dangote Industries Limited and Chairman of DPRP, Aliko Dangote, described the capital raise as a major milestone in the company’s evolution.
“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.”
Also commenting, the Managing Director and Chief Executive Officer of Dangote Petroleum Refinery & Petrochemicals, David Bird, said the exceptional response from investors validates the company’s operational achievements and future growth 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.”
The company said the successful completion of the equity placement positions the refinery to accelerate its long-term growth strategy while reinforcing its role in strengthening Africa’s energy security through world-scale refining and petrochemical production.
It added that the strong investor participation further reinforces confidence in the company’s vision to create sustainable value while expanding refining capacity on the continent.
Dangote Petroleum Refinery, located in the Lekki Free Zone, Lagos, is Africa’s largest single-train refinery with a capacity to process 650,000 barrels of crude oil per day. Since commencing operations, the refinery has been positioned as a key project expected to reduce Nigeria’s dependence on imported petroleum products, boost foreign exchange earnings and support industrial development across Africa.
The company also expressed appreciation to its financial advisers and transaction partners, noting that their expertise and support were instrumental in the successful completion of the landmark fundraising exercise.
