Dangote Taps $2.5 Billion in Private Share Placement Before IPO

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessDangote Taps $2.5 Billion in Private Share Placement Before IPOAliko Dangote has nearly completed a $2.5 billion 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.Author of the article:Anthony Osae-Brown and Loni Prinsloo You can save this article by registering for free here. Or sign-in if you have an account.Dangote's refinery outside of Lagos, Nigeria, on Friday, March 6, 2020. Photo by Tom Saater /Photographer: Tom Saater/Bloombe(Bloomberg) — Aliko Dangote has nearly completed a $2.5 billion 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.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAfrica’s richest person sold a stake representing as much as 6% of Dangote Petroleum Refinery & Petrochemicals FZE at a pricing that would value the company at about $40 billion, one of the people said, asking not to be identified discussing confidential matters.The offer, which attracted around $4 billion in demand, initially sold $2 billion of shares followed by a further $500 million mainly backed by regional institutional investors, the person said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againDangote officials declined to comment.The fundraising is a key milestone ahead of what is expected to be one of the most closely watched equity offerings in Africa and emerging markets more broadly.The firm also recently completed a debt offer in which it raised $750 million for the 700,000 barrels-per-day crude processing plant located on the outskirts of Lagos, Nigeria’s commercial hub.The IPO could raise a further $1.5 billion to $2 billion with a listing expected as early as August, the people said. Dangote’s emphasis on African investor participation in the private placements and the retail offering of the IPO, is consistent with the billionaire’s push for greater regional ownership in the financing of the continent’s industrial development. Proceeds will go toward doubling the capacity of the refinery to 1.4 million barrels per day by 2028, making it one of the largest in the world as customers seek to reduce their reliance on Gulf energy supplies following the Feb. 28 outbreak of the Iran war.Africa’s largest oil producer has significant crude reserves. The facility was envisioned as a way to tap more value from domestic production while easing dependence on petroleum imports, which strain Nigeria’s foreign exchange reserves and put pressure on the naira.The refinery has the capacity to meet Nigeria’s own needs and still have enough left over for exports, which made it a valuable asset when other nations turned to it to fill the gap after the Iran war disrupted traditional supply routesThe expected IPO is likely to be heavily marketed to Nigerians and other African and international retail investors, the people said, in an effort to attract broad demand from ordinary citizens.Sign up here for the daily Next Africa newsletter and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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