Dangote Petroleum Refinery and Petrochemicals (DPRP) has raised about $2.5 billion in new equity after a private placement that was 3.7 times oversubscribed, in what the company described as Africa’s largest publicly disclosed primary equity private placement.
The fundraising marks the refinery’s first equity capital raise involving external investors outside its existing shareholder base, broadening its ownership structure as the company seeks to finance expansion and strengthen its balance sheet.
The proceeds will be used to expand the refinery and petrochemical complex, reinforce the company’s capital structure and provide financial flexibility for future growth initiatives, the company said in a statement.
The transaction drew commitments from international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners, including Africa Finance Corporation and India Infra Buildco, an investment vehicle facilitated by African Export-Import Bank (Afreximbank).
The strong demand underscores investor confidence in one of Africa’s largest industrial projects, which is expected to play a central role in reducing the continent’s dependence on imported refined petroleum products.
Aliko Dangote, President and Chief Executive Officer of Dangote Industries Ltd. and Chairman of Dangote Petroleum Refinery and Petrochemicals, said the fundraising would diversify the company’s shareholder base while supporting its long-term expansion plans.
“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.”
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.”
David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, said the level of investor demand reflected confidence in the company’s operations and growth prospects.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership.”
The company said the successful placement positions it to continue executing its long-term growth strategy while expanding refining and petrochemical capacity across Africa. It added that the transaction also represents a milestone for African capital markets by demonstrating the ability of large-scale industrial projects on the continent to attract substantial private equity investment from a diverse global investor base.
