Dangote Petroleum Refinery and Petrochemicals raised $2.5 billion in a private equity placement that was 3.7 times oversubscribed, marking what is believed to be the largest primary equity fundraising by a private company in Africa.
The deal, closed this week, is the first time the refinery has brought in external shareholders beyond its legacy ownership base. Proceeds will fund further expansion of the 650,000-barrel-a-day complex, reinforce the balance sheet and give the company more room to pursue growth projects.
Demand came from a mix of international and African institutions, sovereign-linked investors, development finance institutions and long-standing partners. Africa Finance Corporation and India Infra Buildco, a vehicle facilitated by Afreximbank , were among the participants, according to the company.
Aliko Dangote, chairman of the group, called the raise “a strategic step to deepen and further institutionalise the shareholder base” while supporting the push to cut Africa’s dependence on imported fuels. Chief Executive David Bird said the scale of demand reflected “operational excellence, execution capacity and investor confidence.”
The placement is widely viewed in the market as further groundwork for a potential public listing. Dangote has previously signalled interest in listing the refinery, possibly on the Nigerian Exchange and other African markets, though no formal timeline has been set.
Stanbic IBTC Capital, Vetiva Capital Management and FirstCap acted as issuing houses on the transaction.
The strong book leaves the refinery better capitalised as it continues ramping production and positions itself as a cornerstone of regional energy security.
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