LAGOS, Nigeria — Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has raised approximately $2.5 billion through a private equity placement, bringing external investors into the company’s shareholder base for the first time.
The company disclosed the completion of the transaction in a statement, saying the new capital would support the expansion of its refinery and petrochemical complex, strengthen its balance sheet and provide greater flexibility for future investments.
Okay News reports that DPRP described the transaction as Africa’s largest publicly disclosed primary equity private placement, although the company did not provide an independent industry ranking to support that description.
The offering attracted participation from African and international institutional investors, development finance institutions, sovereign-linked investment vehicles, strategic partners and individual investors.
Participants included the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank).
The placement represents DPRP’s first equity funding round involving investors outside its existing shareholder base. The company said the response to the offering showed investor interest in its operating performance and expansion plans.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited and Chairman of DPRP, said the funding would complement the company’s internal cash flows and other financing sources.
“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,” Dangote said.
“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.”
The company did not disclose the percentage of equity sold, the valuation applied to the transaction or the full list of participating investors.
David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, said demand during the placement supported the company’s assessment of investor confidence in its operations.
“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,” Bird said.
DPRP said the proceeds would be used to expand refining and petrochemical capacity while improving its capital structure.
The company also acknowledged the advisers and transaction partners involved in completing the placement but did not identify them in the statement.
