The management of Dangote Refinery and Petrochemicals Company Limited has confirmed the successful completion of a $2.5 billion private placement exercise, representing one of the largest corporate fundraising transactions in Sub-Saharan Africa’s (SSA’s) investment space.
In the statement made on Thursday regarding the transactions, the management described the transaction as a major feat in its long-term growth strategy and efforts to strengthen its capital base.
The statement partly reads: “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.
“This transaction is believed to be Africa’s largest publicly disclosed primary equity private placement by value.
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“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”, the management added.
The management maintained that proceeds from the private placement would “support the 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-lmport Bank (Afreximbank), alongside a broad mix of institutional and individual investors, underscoring deep and diversified market confidence in DPRP’s long-term strategy”, it added.
Commenting on the feat, President/Chief Executive Officer (CEO) of Dangote Industries Limited who is also the chairman of refinery, Aliko Dangote, described the transaction as a strategic step to broaden and strengthen the company’s shareholder base, and also raising capital to complement its internal cash flows and external funding as the management continues its efforts to boost the refinery’s production and market share in SSA.
The industrialist clarified: “This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity – reducing Africa’s reliance on imported refined products and strengthening the continent’s energy security.”
In his remarks, the company’s Managing Director/Chief Executive Officer (CEO), David Bird, enthused: “The demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership.”
