Dangote Refinery Completes Africa’s Largest Equity Raise With $2.5bn Private Placement

Dangote Petroleum Refinery and Petrochemicals FZE has completed a $2.5 billion private equity placement, largest corporate fundraising transactions by an African company.

The company announced the development on Thursday, describing the transaction as a significant milestone in its long-term growth strategy and efforts to strengthen its capital base.

It stated that the private placement was oversubscribed with proceeds earmarked to support the ongoing expansion of the Dangote Petroleum Refinery and Petrochemicals complex.

Dangote Refinery said the transaction attracted strong investor demand and would provide additional capital to support the expansion of its refinery and petrochemical operations.

“The private placement achieved 3.7 times subscription relative to the initial offer size and resulted in the issuance and allotment of approximately $2.5 billion in new equity,” the company said.

“Proceeds from the private placement will support DPRP’s ongoing expansion of refinery and petrochemical complex,” the statement added.

The offering attracted strong participation from a diverse group of international and African institutional investors, sovereign-related investment vehicles, development finance institutions and long-standing strategic partners, including Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), alongside a broad mix of institutional and individual investors, underscoring deep and diversified market confidence in DPRP’s long-term strategy.

The chief executive officer of Dangote Industries, Aliko Dangote described the raise as a strategic milestone, saying that “this 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.”

He added that “the raise was 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.”

The managing director and chief executive officer of the refinery, David Bird, said the strong demand demonstrated investor confidence in the company’s leadership and execution capacity.

Dangote Refinery stated that “following completion of the Private Placement, DPRP is well positioned to continue executing its long-term growth strategy while strengthening Africa’s energy security through world-scale refining and petrochemical capacity. The strong investor response underscores continued confidence in DPRP’s strategy and strengthens its platform for long-term value creation.”