Dangote Refinery’s planned IPO gets $1bn underwriting boost

The planned initial public offering (IPO) of the Dangote Petroleum Refinery and Petrochemicals has received a $1 billion financial backing, strengthening preparations for what could become one of Africa’s biggest industrial listings.

The underwriting programme, structured by Marob Strategies and Consulting DIFC Limited and Lilium Capital Group, consists of a completed $600 million private placement and an additional $400 million underwriting commitment for the proposed IPO.

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 to sovereign wealth funds, governments, institutional investors and other eligible investors across Global Africa.

The advisers said the transaction had attracted strong interest from institutional investors, reflecting growing demand for large-scale African assets with long-term economic potential.

They said the programme was also expected to encourage intra-African capital flows and support the development of a more integrated African capital market under the African Continental Free Trade Area.

Beyond raising capital, the $1 billion programme is expected to broaden African ownership of the refinery and demonstrate the capacity of African financial institutions to mobilise long-term funding for industrialisation, energy security, import substitution and trade integration.

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

He said the completed private placement and additional underwriting commitment reflected investor confidence in the refinery’s strategic importance.

According to Dangote, the transaction would also create opportunities for African and Caribbean sovereign wealth funds, governments and institutional investors to participate in the refinery.

Chairman of Marob Strategies, Benedict Oramah, said the level of investor interest demonstrated the growing appetite for African-led capital market transactions involving transformative assets.

Oramah said the successful transaction could pave the way for similar capital market deals involving major African assets.

Lilium Capital Group Chairman, Simon Tiemtoré, said the mandate was consistent with the firm’s strategy of connecting major African investment opportunities with institutional and international capital.

He said mobilising long-term funding for strategic assets such as the Dangote Refinery would contribute to industrialisation, stronger capital markets and sustainable economic growth across Africa.

The planned IPO is expected to further expand investment participation in the refinery, which has become a major component of Nigeria’s efforts to strengthen domestic petroleum refining and reduce dependence on imported refined products.