Africa’s largest oil refinery, Dangote Petroleum Refinery, has secured a $1 billion underwriting programme to support its planned initial public offering (IPO), the company announced on Tuesday.
The programme, arranged by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, consists of a $600 million private placement that has already been completed and funded, alongside an additional $400 million underwriting commitment for the proposed IPO.
According to Dangote Group, the $600 million private placement was funded and underwritten by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
Marob Strategies and Lilium Capital are responsible for coordinating the distribution of the underwriting participation across Global Africa. The firms are engaging sovereign wealth funds, governments, institutional investors and other eligible investors.
The advisers said the transaction had attracted strong interest, reflecting increasing institutional demand for major African assets with the potential to deliver long-term economic benefits.
The company said the programme could also encourage greater movement of capital within Africa and contribute to the development of a more integrated African capital market under the African Continental Free Trade Area framework.
Dangote Industries Chief Executive Aliko Dangote described the financing arrangement as a significant milestone for the refinery and African capital markets.
He said the transaction demonstrated investor confidence in the refinery’s strategic importance while creating an opportunity for African and Caribbean sovereign wealth funds, governments and institutional investors to participate in the asset.
Marob Strategies Chairman Benedict Okey Oramah said the deal highlighted the growing appetite for African-led capital market transactions that provide investors with access to major strategic assets across the continent.
Lilium Capital Group Chairman Simon Tiemtoré said the mandate aligned with the company’s objective of connecting major African investment opportunities with institutional investors in Africa and international markets.
He said mobilising long-term financing for strategic assets such as the Dangote refinery would support industrialisation, deepen African capital markets and contribute to sustainable economic growth.
Located in Lagos, the Dangote refinery has a processing capacity of 650,000 barrels per day, making it the largest refinery in Africa.