Dangote Petroleum Refinery has raised $2.5 billion through a private placement as it seeks to strengthen its financing structure, company executive, Devakumar Edwin, told Reuters News Agency on Friday, July 17.
The capital was raised ahead of a planned sale of shares through Initial Public Offer (IPO) at the stock market later this year is expected to help fund the refinery’s expansion as it ramps up operations and expands in domestic and export fuel markets.
There are indications that the Dangote IPO will take place in September this year.
The 650,000-barrel per day refinery, which started production in 2024, has ramped up output of diesel, jet fuel, naphtha and petrol, sharply cutting Nigeria’s reliance on fuel imports.
Last month, sources familiar with the private placement deal told Reuters that the refinery was offering 3 billion ordinary shares at $0.35 each, with demand already topping $2 billion.
Investors were required to subscribe for at least one million shares, worth $350,000, with additional purchases in blocks of 500,000 shares. The private placement shares will be subject to a 365-day lock-up, sources said.
