Dangote Refinery $2.5bn Private Placement

Dangote Petroleum Refinery, Africa's largest refinery with a capacity of 650,000 barrels per day, has successfully completed a $2.5 billion private equity placement that was oversubscribed by 3.7 times. The placement, described as Africa's largest publicly disclosed primary equity private placement, attracted a broad mix of international and African institutional investors, including Africa Finance Corporation (AFC) and India Infra Buildco, facilitated by Afreximbank. Proceeds will fund expansion to increase refining capacity to 1.4 million barrels per day by 2028, strengthen the balance sheet, and support future growth. The placement is a precursor to a planned initial public offering (IPO) on the Nigerian Exchange Group, potentially as soon as August 2026, which could raise an additional $1.5-2 billion. The refinery has already reduced Nigeria's dependence on imported fuel and plans to build a 700,000-bpd refinery in Kenya. The company's founder, Aliko Dangote, stated the capital will complement internal cash flows and external funding. The Nigerian Securities and Exchange Commission had previously warned investors about unauthorized IPO solicitations.