Dangote Refinery Gets $1bn Underwriting Support Ahead of Market Listing

The Dangote Petroleum Refinery & Petrochemicals has secured $1bn in underwriting support ahead of its planned Initial Public Offering (IPO), strengthening preparations for a potential market listing.

The underwriting programme comprises a completed and funded $600m private placement and an additional $400m underwriting commitment in support of the planned IPO.

The programme was structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, with the $600m private placement underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.

Marob Strategies and Lilium Capital are now coordinating the distribution of the underwriting participation across Global Africa, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.

According to the advisers, the response to the programme has been strong, reflecting growing institutional appetite for large-scale African assets capable of generating long-term economic value.

The programme is also expected to catalyse intra-African capital flows and support broader participation in the ownership of the refinery as it progresses towards the planned listing.

Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, described the transaction as an important milestone for the refinery and African capital markets.

“This is an important milestone for DPRP and for African capital markets,” Dangote said.

He said the successful completion of the private placement, alongside the $400m underwriting commitment, “reflects confidence in the refinery’s strategic role.”

Dangote added that the transaction had created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.

“The successful completion of the private placement, together with the $400m underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role,” he said.

He said the work undertaken by Marob Strategies and Lilium Capital had also created a platform for broader participation by investors across Global Africa.

Professor Benedict Okey Oramah, Chairman of Marob Strategies, said the transaction demonstrated investor appetite for African-led capital market transactions providing access to transformative assets on the continent.

“As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition,” Oramah said.

He said Marob Strategies was now focused on disciplined distribution across Global Africa, engaging sovereign wealth funds, governments, institutional investors and other eligible investors.

“The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent,” Oramah said.

He added that the transaction could pave the way for similar capital market deals in the future.

He said mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery would support industrialisation, strengthen capital markets and contribute to sustainable economic growth across the continent.

“By mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery, we are supporting industrialisation, strengthening capital markets and contributing to sustainable economic growth across the continent,” he said.

The planned IPO comes as the Dangote Refinery continues to expand its role in Nigeria’s downstream petroleum market and strengthen domestic refining capacity.

A successful listing could provide a major test of the Nigerian capital market’s capacity to accommodate a large strategic industrial asset while widening institutional and potentially cross-border African ownership.

For the broader African capital market, the transaction could also demonstrate the capacity of regional institutions and investors to mobilise long-term capital for large-scale industrial projects on the continent.he success of this transaction paves the way for many more such transactions in the future,” he said.

Simon Tiemtoré, Chairman of Lilium Capital Group, said the mandate was part of the firm’s effort to connect major African investment opportunities with institutional investors across Global Africa and international markets.

“This mandate reflects Lilium Capital’s commitment to connecting world-class African opportunities with institutional investors across Global Africa and international markets,” Tiemtoré said.