The Dangote Petroleum Refinery and Petrochemicals has secured a $1 billion underwriting programme ahead of its planned Initial Public Offering.
The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, includes a completed and funded $600 million private placement and a further $400 million underwriting commitment for the proposed IPO.
According to a statement by the Dangote Group on Tuesday, 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, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.
The advisers said the transaction had attracted strong interest, reflecting growing institutional demand for major African assets with long-term economic potential. They added that the programme could also boost intra-African capital flows and support the development of a more integrated African capital market.
Dangote Industries Limited President and Chief Executive Officer, Aliko Dangote, described the transaction as an important milestone for the refinery and African capital markets.
He said the successful private placement and $400 million underwriting commitment demonstrated investor confidence in the refinery’s strategic importance and would create opportunities for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors.
Chairman of Marob Strategies, Professor Benedict Okey Oramah, said the deal demonstrated growing investor appetite for African-led capital market transactions involving major assets on the continent.
Lilium Capital Group Chairman, Simon Tiemtoré, said the mandate reflected the company’s commitment to connecting major African investment opportunities with institutional investors in Africa and international markets.
He said mobilising long-term capital for strategic assets such as the Dangote refinery would support industrialisation, strengthen capital markets and contribute to economic growth across Africa.
