Dangote Refinery Raises $2.5bn In Private Equity Placement

Dangote Petroleum Refinery and Petrochemicals says it has raised about $2.5 billion in fresh equity through a private placement.

Premium Times reported that the company described the deal as Africa’s largest publicly disclosed primary equity private placement by value. The placement was said to have been 3.7 times oversubscribed.

The company said the transaction brought in external investors beyond its existing shareholder base and resulted in the issuance and allotment of about $2.5 billion in new equity.

According to the report, the proceeds are meant to support further expansion of the refinery and petrochemical complex, strengthen the company’s balance sheet and give it more financial flexibility.

The announcement came about a month after Nigeria’s Securities and Exchange Commission warned investors against a purported initial public offering of the refinery, saying no such offer had been submitted to or approved by the regulator.

Source: Premium Times