Planned Dangote Refinery IPO boosted by $1bn underwriting deal
The Dangote Petroleum Refinery has taken another step closer to its huge IPO with a deal that opens the door to African and Caribbean funds.
Marob Strategies and Lilium Capital have successfully finalized the initial phase of a $1 billion underwriting program for Dangote Petroleum Refinery's planned IPO, marking a significant milestone in African history. The $1 billion underwriting program is comprised of a $600 million private placement and a $400 million underwriting commitment, with the latter being implemented post-IPO launch, contingent upon market conditions, corporate and regulatory approvals, and the execution of definitive documentation.
The $20 billion Dangote Petroleum Refinery, situated near Lagos, Nigeria, is the largest of its kind on the continent, processing around 700,000 barrels of crude oil daily. Reports suggest that the refinery has submitted a $5 billion IPO application to Nigeria's Securities and Exchange Commission. Additionally, Dangote is eyeing a refinery in East Africa, where several countries are set to tap into new oil fields.
Financial advisors are currently coordinating the sell-down of the $600 million underwriting participation, targeting African and Caribbean sovereign wealth funds, governments, and institutional investors. The investor response has been deemed strong and strategically significant, reflecting a demand for high-quality, globally significant industrial assets and transactions that empower African and Africa-linked capital to directly finance Africa's growth platforms.
Dangote Industries' president and CEO, Aliko Dangote, expressed satisfaction with the underwriting program, stating that it represents a crucial milestone for DPRP and African capital markets. The successful completion of the private placement, coupled with the $400 million underwriting commitment from Pan-African Refinery Investment SPV, highlights the refinery's pivotal role in Africa's industrial landscape.
The deal is also expected to create opportunities for broader involvement from African and Caribbean sovereign wealth funds, governments, and institutional investors across Global Africa.
Written by urgent.news from Africa Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
