Dangote Refinery Secures $1bn Backing Ahead Of Planned Initial Public Offering

The planned initial public offering of the Dangote Petroleum Refinery & Petrochemicals has received a major boost with the successful completion of a $1 billion underwriting programme, setting the foundation for what could become Africa’s most consequential industrial listing.

The programme, structured by Marob Strategies and Consulting DIFC Limited and Lilium Capital Group, comprises a completed and funded $600 million private placement and a further $400 million underwriting commitment in support of the refinery’s planned IPO.

The $600 million private placement has been 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 appetite for large-scale African assets capable of generating long-term economic value. The programme is also expected to catalyse significant intra-African capital flows and help pave the way toward a more integrated African capital market under the African Continental Free Trade Area (AfCFTA).

The $1 billion underwriting programme is designed to be more than a capital-raising exercise. It is expected to help deepen African capital markets, broaden 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.

The president and chief executive of Dangote Industries Limited, Alhaji Aliko Dangote, described the transaction as a key milestone.

“The successful completion of the private placement, together with the $400 million underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role. The work undertaken by Marob Strategies and Lilium Capital has also created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa” Dangote said.

Chairman of Marob Strategies, Professor Benedict Oramah, said the deal demonstrated strong demand for African-led capital market transactions.

“As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition. The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent. The success of this transaction paves the way for many more such transactions in the future,” he said.

Also, the chairman of Lilium Capital Group, Simon Tiemtoré, said the mandate aligns with the firm’s strategy to connect major African opportunities with global capital.

“This mandate reflects Lilium Capital’s commitment to connecting world-class African opportunities with institutional investors across Global Africa and international markets. By mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery, we are supporting industrialisation, strengthening capital markets and contributing to sustainable economic growth across the continent,” Tiemtoré said.