Dangote refinery confirms successful completion of $2.5bn private placement
The Dangote Petroleum Refinery has confirmed the successful completion of a $2.5 billion private placement, marking one of the largest corporate fundraising transactions by an African company.
The company announced the development on Thursday, describing the transaction as a significant milestone in its long-term growth strategy and efforts to strengthen its capital base.
The private placement, according to the company, was oversubscribed with proceeds earmarked to support the ongoing expansion of the Dangote Petroleum Refinery and Petrochemicals complex.
Dangote Refinery said the transaction attracted strong investor demand and would provide additional capital to support the expansion of its refinery and petrochemical operations.
“The Private Placement achieved 3.7 times subscription relative to the initial offer size and resulted in the issuance and allotment of approximately US$2.5 billion in new equity,” the company said.
“Proceeds from the Private Placement will support DPRP’s ongoing expansion of refinery and petrochemical complex,” the statement added.
This is 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,” Aliko Dangote, Chief Executive Officer of Dangote Industries Limited, said.
“This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity – reducing Africa’s reliance on imported refined product and strengthening the continent’s energy security,” Dangote added.
The Managing Director and Chief Executive Officer of the refinery, David Bird, said the strong demand demonstrated investor confidence in the company’s leadership and execution capacity.
The refinery had raised $2.5 billion through a private placement as it prepared for a planned initial public offering later this year, strengthening its financing position ahead of its next phase of expansion.
