The planned Initial Public Offering (IPO) of the Dangote Petroleum Refinery and Petrochemicals has received a major boost with the completion of a $1 billion underwriting programme ahead of the proposed listing.
The funding arrangement comprises a $600 million private placement that has already been completed and funded, alongside a further $400 million underwriting commitment to support the refinery’s planned IPO.
The programme was structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group.
The development could strengthen the capital markets foundation for what is expected to be one of Africa’s most significant industrial listings, while opening the refinery to broader participation by institutional investors across the continent and the global African investment community.
The $600 million private placement was underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
Marob Strategies and Lilium Capital are now working to distribute the underwriting participation across Global Africa, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.
The advisers said the response has been strong, reflecting growing investor interest in large-scale African assets with the potential to generate long-term economic value.
The programme is also expected to encourage greater intra-African capital flows and support efforts to build a more integrated African capital market under the African Continental Free Trade Area (AfCFTA).
President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the transaction as an important milestone for both the refinery and Africa’s capital markets. “This is an important milestone for DPRP and for African capital markets,” Dangote said.
He said the successful private placement and underwriting commitment demonstrate investor confidence in the refinery’s strategic importance.
Dangote added that the transaction would create an avenue for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.
Professor Benedict Okey Oramah, Chairman of Marob Strategies, said the transaction demonstrates the appetite for African-led capital market deals that give investors access to transformative assets on the continent.
He said Marob Strategies would focus on disciplined distribution of the investment opportunity across Global Africa while engaging sovereign wealth funds, governments and institutional investors.
According to Oramah, the strong investor interest could pave the way for similar large-scale African capital market transactions in the future.
Simon Tiemtoré, Chairman of Lilium Capital Group, said the mandate reflects the company’s objective of connecting major African investment opportunities with institutional investors across Global Africa and international markets.
He said mobilising long-term capital for strategic assets such as the Dangote refinery would support industrialisation, strengthen African capital markets and contribute to long-term economic growth.
