Dangote Petroleum Refinery has completed a $1 billion underwriting programme ahead of its planned Initial Public Offering (IPO), in a move expected to strengthen the foundation for the refinery’s proposed listing.
Gatekeepers News reports that according to a statement issued on Tuesday, the programme was structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group.
The refinery said the programme consists of a completed and funded $600 million private placement, alongside a further $400 million underwriting commitment in support of its planned IPO.
“The planned Initial Public Offering of the Dangote Petroleum Refinery & Petrochemicals has taken a significant step forward with the successful completion of a US$1 billion underwriting programme, strengthening the capital markets foundation for what could become Africa’s most consequential industrial listing,” the statement said.
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 coordinating the distribution of the underwriting participation across Global Africa, with engagements involving sovereign wealth funds, governments, institutional investors and other eligible investors.
The refinery said the response had been strong, reflecting growing institutional interest in large-scale African assets capable of generating long-term economic value.
“The programme is also expected to catalyse significant intra-African capital flows and help pave the way towards a more integrated African capital market under the auspices of the African Continental Free Trade Area (“AfCFTA”),” the statement added.
According to the refinery, the $1 billion programme is intended to go beyond raising capital, with the transaction expected to deepen African capital markets, broaden ownership of a strategic African enterprise and demonstrate the ability of African institutions to mobilise long-term capital.
“It is expected to help deepen African capital markets, broaden ownership of a strategic African enterprise and demonstrate how African institutions can mobilise long-term capital for industrialisation, energy security, import substitution and trade integration,” the refinery said.
‘Important milestone for African capital markets’
Speaking on the development, Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, described the transaction as an important milestone for both the refinery and African capital markets.
“This is an important milestone for DPRP and for African capital markets,” Dangote said.
He said the transaction reflected confidence in the refinery’s strategic role while creating 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 US$400 million underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role,” Dangote said.
“The work undertaken by Marob Strategies and Lilium Capital has also created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.”
Benedict Oramah, chairman of Marob Strategies, said the transaction demonstrated strong appetite for African-led capital markets transactions and provided investors with access to transformative assets on the continent.
“Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors,” Oramah said.
“The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent. The success of this transaction paves the way for many more such transactions in the future.”
Simon Tiemtoré, chairman of Lilium Capital Group, said the mandate formed part of the firm’s efforts to connect major African investment opportunities with institutional investors across Global Africa and international markets.
