Dangote Petroleum Refinery and Petrochemicals has successfully completed a landmark US$2.5 billion private equity placement, securing what is believed to be Africa’s largest publicly disclosed primary equity private placement and attracting strong investor backing for its long-term expansion strategy.
The company announced on Thursday that the offer was 3.7 times oversubscribed relative to its initial size, resulting in the issuance and allotment of approximately US$2.5 billion in new equity from a diverse group of African and international institutional investors.
Describing the transaction as a milestone for the company and Africa’s capital markets, President and Chief Executive of Dangote Industries Limited and Chairman of Dangote Petroleum Refinery and Petrochemicals, Aliko Dangote, said the fundraising would strengthen the refinery’s financial position while accelerating its expansion plans.
“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.
”According to the company, proceeds from the equity placement will support the continued expansion of the refinery and petrochemical complex, strengthen its capital structure and provide additional financial flexibility for future growth initiatives.
It said the offering attracted participation from a broad mix of international and African institutional investors, sovereign-related investment vehicles, development finance institutions and long-term strategic partners, including Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by Afreximbank.
The company said the breadth of investor participation underscored deep confidence in the refinery’s long-term strategy and growth prospects.
Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the level of investor demand reflected confidence in the company’s operational performance.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership.
”The company noted that the transaction marks its first external equity capital raise beyond its legacy shareholder base and represents a significant step in advancing its long-term funding strategy while contributing to the continued development of Africa’s capital markets.
Following the successful placement, Dangote Petroleum Refinery said it is well positioned to continue executing its long-term growth strategy, expand refining and petrochemical capacity, strengthen Africa’s energy security and create long-term value for investors.
Erizia Rubyjeana
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