The Dangote Petroleum Refinery has secured a $1 billion underwriting programme ahead of its planned initial public offering (IPO), in a major step that could broaden African and Caribbean ownership of one of the continent’s most important energy assets. The programme is expected to attract long-term institutional investors while strengthening the refinery’s position in Africa’s evolving capital markets.
The deal, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, includes a completed $600 million private placement and an additional $400 million underwriting commitment for the proposed IPO. The private placement has already been fully funded, while the underwriting facility will become active once the public offering begins, subject to regulatory approvals, market conditions and the completion of final agreements.
The underwriting programme is being provided by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital. It is designed to bring African and Caribbean sovereign wealth funds, governments, institutional investors and other eligible investors into the refinery’s growth story. For Dangote Industries Limited Chairman Aliko Dangote, the transaction reflects rising confidence in the refinery’s strategic importance and its potential contribution to the development of African capital markets.
“This is an important milestone for DPRP and for African capital markets,” Dangote said, noting that the successful private placement and the additional underwriting commitment demonstrate confidence in the refinery’s strategic role. He added that the partnership with Marob Strategies and Lilium Capital could create wider opportunities for African and Caribbean investors to participate in the refinery’s future expansion and development.
Marob Strategies Chairman Prof. Benedict Okey Oramah described the transaction as evidence of growing investor appetite for major African-led investment opportunities, while Lilium Capital Chairman Simon Tiemtoré said the deal fits the firm’s goal of connecting strategic African assets with institutional investors around the world. With the $1 billion backing now secured, attention will turn to the next stages of the planned Dangote Refinery IPO, which could become a significant test of investor appetite for large-scale African energy assets.
source: The Guardian
