Devakumar Edwin, vice-president of the Dangote Group, says the company has raised $2.5 billion through a 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.
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