Dangote Refinery Completes $1bn Underwriting Programme Ahead Of IPO

The Dangote Petroleum Refinery has announced the successful completion of a $1 billion underwriting programme ahead of its planned initial public offering (IPO).

The refinery disclosed this in a statement on Tuesday, saying the programme was structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group.

An underwriting programme is an arrangement in which an investor or financial institution commits to supporting a company’s fundraising initiative.

According to the refinery, the programme consists of a $600 million private placement that has been completed and funded, alongside a further $400 million underwriting commitment in support of its planned IPO.

“The planned Initial Public Offering of the Dangote Petroleum Refinery & Petrochemicals has taken a significant step forward with the successful completion of a US$1 billion underwriting programme,” the statement said.

It added that the $600 million private placement was underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.

The refinery said 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.

According to the advisers, the response has been strong, reflecting growing institutional interest in large-scale African assets with long-term economic potential.

The refinery said the programme is also expected to encourage greater intra-African capital flows and contribute to the development of a more integrated African capital market under the African Continental Free Trade Area (AfCFTA).

It described the $1 billion programme as more than a conventional capital-raising exercise, saying it could help deepen African capital markets, broaden ownership of a strategic African enterprise and demonstrate the capacity of African institutions to mobilise long-term capital.

The initiative is also expected to support industrialisation, strengthen energy security, promote import substitution and facilitate greater trade integration across the continent.