Dangote refinery has raised $2.5bn through private placement

According to a Reuters report on Friday, the move is part of the company’s efforts to strengthen its financing structure.

 

The report added that the capital raised ahead of the refinery’s planned initial public offering (IPO) later this year is expected to finance its expansion, as the company ramps up operations and increases its presence in both domestic and export fuel markets.

 

In June, sources familiar with the deal told Reuters the refinery was offering three billion ordinary shares at $0.35 each, ⁠with demand already topping $2 billion.

 

 

According to the report, investors were required to subscribe for at least 1 million shares, ⁠worth $350,000, with additional purchases in blocks of 500,000 shares.

 

Sources told the publication that the shares will ⁠be subject to a 365-day lock-up.

 

On October 22, 2025, Aliko Dangote, the owner of Dangote refinery, said the company could sell up to 10 percent stake in the listing, which reports valued at about $5 billion.

 

 

In May, Dangote said the company is targeting a private placement of about $2 billion for the refinery.

 

The industrialist, however, noted that the refinery may not sell up to that amount in the private placement, but said “we’ll see what we can allocate to them”.

 

On the same day, Femi Otedola, chairman of First HoldCo, said he would invest $100 million in the refinery.

 

Source: TheCable