Dangote Petroleum Refinery and Petrochemicals has raised approximately $2.5 billion in fresh equity after successfully concluding a private placement that was 3.7 times oversubscribed, the company said in a statement on Thursday.
The company described the placement as Africa’s largest publicly disclosed primary equity private placement by value, affirming that the transaction resulted in the issuance and allotment of about $2.5 billion in new equity and represents the refinery’s first capital raise involving external investors beyond its existing shareholder base.
“Dangote Petroleum Refinery and Petrochemicals FZE (“DPRP” or the “Enterprise”) today announces the successful completion of its landmark Private Placement, which 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 statement said.
The company said the proceeds would finance the continued expansion of its refinery and petrochemical complex, strengthen its balance sheet and provide greater financial flexibility to support future growth.
The announcement of private placement by the Refinery came about a month after Nigeria’s Securities and Exchange Commission (SEC) warned Nigerians and investors against participating in a purported initial public offering (IPO) of the Dangote Petroleum Refinery, saying no application for such an offer has been submitted to or approved by the regulator.
