Dangote Refinery on Thursday announced that it has successfully raised $2.5 billion in new equity through a private placement.
The refinery disclosed this in a statement on Thursday.
According to the firm, the $2.5 billion equity raise was 3.7 times oversubscribed relative to the initial offer size and resulted in the issuance of new equity.
“This transaction is believed to be Africa’s largest publicly disclosed primary equity private placement by value. As the Enterprise’s first equity capital raise involving external investors beyond its legacy shareholder base, the offering marks a significant milestone in advancing its long-term funding strategy and the continued development of African capital markets.
“Proceeds from the private placement will support DPRP’s ongoing expansion of the refinery and petrochemical complex, strengthen the Enterprise’s capital structure, and provide additional financial flexibility for future growth initiatives.
“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.”
Commenting on the development, Aliko Dangote, President/Chief Executive of Dangote Industries Limited and Chairman of DPRP, described the transaction as “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.”
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