Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has completed a $2.5 billion private equity placement, in what is being described as the largest publicly disclosed primary equity private placement in Africa's history.
The company said the offer was oversubscribed 3.7 times relative to its initial size, resulting in the issuance and allotment of roughly $2.5 billion in new equity.
The transaction marks DPRP's first capital raise involving investors outside its existing shareholder base, a step the company says will support its long-term funding strategy and add depth to African capital markets.
Backers in the round included Africa Finance Corporation and India Infra Buildco, an investment vehicle arranged through the African Export-Import Bank, alongside a range of other international and African institutional investors, sovereign-linked funds and development finance institutions.
DPRP said proceeds would go toward expanding its refinery and petrochemical complex, reinforcing its capital structure and building financial headroom for future growth.
Aliko Dangote, chairman of DPRP and president/chief executive of Dangote Industries Limited, said the placement was a strategic step to deepen and institutionalise the company's shareholder base while supplementing internal cash flow and external funding as the refinery pushes ahead with expansion.
David Bird, DPRP's managing director/chief executive officer, said the level of demand reflected investor confidence in the company's execution and leadership.
DPRP said it now intends to press ahead with its growth strategy, framing the raise as reinforcing Africa's energy security through expanded refining and petrochemical capacity.
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