Dangote Petroleum Refinery has raised $2.5 billion through a private placement as it prepares for a planned initial public offering (IPO), reinforcing its financial position ahead of the next phase of expansion.
The successful fundraising was confirmed on Friday by Devakumar Edwin, the refinery’s Group Executive Director, according to Reuters.
The fresh capital will support the expansion of the 650,000-barrels-per-day refinery, enabling it to increase production capacity and strengthen its presence in Nigeria’s domestic fuel market while expanding exports across Africa and beyond.
The fundraising underscores strong investor confidence in what is widely regarded as the world’s largest single-train refinery.
Earlier reports indicated that the private placement had already attracted subscriptions exceeding $2 billion, with investors required to purchase a minimum of one million shares valued at $350,000. Additional investments were available in blocks of 500,000 shares, while all shares are subject to a one-year lock-up period.
According to an information memorandum previously reported by Nairametrics, the refinery offered three billion ordinary shares at $0.35 per share, valuing the company at approximately $39.1 billion.
Although the identities of investors were not disclosed, the strong demand suggests institutional investors are positioning ahead of the refinery’s anticipated public listing.
The private placement comes as Dangote Refinery continues preparations for what is expected to be one of Africa’s biggest IPOs.
Earlier this year, reports indicated that billionaire industrialist Aliko Dangote was considering listing about 10 per cent of Dangote Petroleum Refinery & Petrochemicals FZE on multiple African stock exchanges to raise capital for the group’s next phase of industrial expansion.
The proposed listing has generated significant interest among investors eager to participate in one of Africa’s largest industrial assets.
Excitement surrounding the planned IPO was briefly dampened in June when Nigeria’s Securities and Exchange Commission (SEC) warned investors against participating in unauthorised fundraising activities linked to the refinery.
The regulator clarified that Dangote Petroleum Refinery had neither filed for nor received approval to launch an IPO and directed capital market operators to discontinue all promotional activities related to the unapproved offer.
The SEC also instructed firms that had accepted subscriptions or expressions of interest to refund investors and remove all related promotional materials from their platforms.
Despite the regulatory caution, preparations for the eventual listing continue to gather momentum.
Nigeria’s National Pension Commission (PenCom) has granted Pension Fund Administrators (PFAs) a special regulatory waiver allowing them to invest pension assets in the refinery’s future IPO once regulatory approvals are secured.
Businessman Femi Otedola has also announced plans to invest $100 million in the offering, describing it as a strategic long-term investment in one of Africa’s most significant industrial projects.
Beyond the IPO, Dangote Refinery is pursuing ambitious growth plans aimed at increasing refining capacity, expanding its petrochemicals operations and strengthening its position as a major supplier of refined petroleum products across Africa.
Aliko Dangote has also disclosed plans to replicate the refinery model in Kenya, signalling the group’s broader ambition to expand its industrial footprint across the continent.
The latest $2.5 billion capital raise is expected to accelerate those plans while positioning the refinery for what could become one of the most closely watched public listings in Africa’s capital markets.
