$1bn Boost: Dangote Refinery Moves Closer to IPO

The planned Initial Public Offering (IPO) of the Dangote Petroleum Refinery & Petrochemicals has received a major boost following the successful completion of a US$1 billion underwriting programme.

The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, consists of a completed and funded US$600 million private placement and an additional US$400 million underwriting commitment to support the refinery’s planned IPO.
The US$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, engaging sovereign wealth funds, governments, institutional investors and other eligible investors.
According to the advisers, the response has been strong, reflecting growing institutional interest in large-scale African assets capable of delivering long-term economic value. The programme is also expected to encourage intra-African capital flows and contribute to the development of a more integrated African capital market under the African Continental Free Trade Area (AfCFTA).
The US$1 billion underwriting programme is designed to go beyond capital raising. It is expected to deepen African capital markets, expand 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.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, described the transaction as an important milestone for the refinery and African capital markets.
Dangote said the successful completion of the private placement, alongside the US$400 million underwriting commitment from Pan-African Refinery Investment SPV in support of the planned IPO, demonstrates confidence in the refinery’s strategic role.
He added that the transaction provides a platform 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 transactions that provide investors with access to transformative assets on the continent.
He said Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors, adding that the level of interest confirms the appetite for such transactions.
Simon Tiemtoré, Chairman of Lilium Capital Group, said the mandate reflects the firm’s commitment to connecting major African opportunities with institutional investors across Global Africa and international markets.
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.