Africa’s richest man, Aliko Dangote, has nearly completed a $2.5bn private share placement for Dangote Petroleum Refinery & Petrochemicals FZE ahead of what is expected to be Africa’s largest initial public offering, according to a Bloomberg report on Friday.
According to people familiar with the transaction, the refinery owner sold a stake representing up to six per cent of the company in a deal that values the Lagos-based refinery at approximately $40bn, underscoring growing investor confidence in the continent’s largest single-train refinery.
The fundraising exercise reportedly drew overwhelming interest from investors, attracting about $4bn in demand, significantly exceeding the amount of shares on offer. People familiar with the transaction said the private placement was executed in phases.
The report stated, “Aliko Dangote has nearly completed a $2.5bn private stock placement for his refinery business, according to people familiar with the matter, as the company prepares for Africa’s largest initial public offering.
“Africa’s richest person sold a stake representing as much as six per cent of Dangote Petroleum Refinery & Petrochemicals FZE at a price that would value the company at about $40bn,” one of the people said, asking not to be identified while discussing confidential matters.
According to one of the sources, “The offer attracted around $4bn in demand. It initially sold about $2bn of shares before a further $500m was raised, largely backed by regional institutional investors.”
The sources, who requested anonymity because the discussions are confidential, said the fundraising marks a major milestone ahead of the company’s planned public listing. Officials of Dangote Industries declined to comment on the transaction.
