Dangote refinery secures $1bn backing for planned IPO

Dangote Petroleum Refinery and Petrochemicals has achieved a significant milestone by securing a $1 billion underwriting program ahead of its planned Initial Public Offering (IPO). The program, expertly structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and fully funded $600 million private placement, complemented by a further $400 million underwriting commitment.

This financial backing is crucial for the refinery's strategic move towards public trading. 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 spearheading the distribution of the underwriting participation across Global Africa, actively engaging sovereign wealth funds, governments, and institutional investors.

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This is an important milestone for DPRP and for African capital markets.

Advisers report a robust response from potential investors, reflecting a growing institutional appetite for large-scale African assets that promise long-term economic value. This initiative is also anticipated to stimulate substantial intra-African capital flows, paving the way for a more integrated African capital market under the framework of the African Continental Free Trade Area.

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The successful completion of the private placement, together with the $400m underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role.

Alhaji Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, hailed the transaction as a pivotal moment for both the refinery and the broader African capital markets. He emphasized that the deal underscores confidence in the refinery's strategic importance and establishes a platform for expanded participation from African and Caribbean sovereign wealth funds, governments, and institutional investors throughout Global Africa.

Professor Benedict Okey Oramah, Chairman of Marob Strategies, expressed pride in the management team's achievement, highlighting the transaction's demonstration of the market's appetite for African-led capital market deals that provide access to transformative assets on the continent. Marob Strategies is now focused on disciplined distribution across Global Africa.

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As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition. Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors.