The planned Initial Public Offering of Dangote Petroleum Refinery & Petrochemicals has moved forward with the completion of a US$1 billion underwriting program. The development strengthens the financial base for the refinery’s planned IPO, which could become one of Africa’s largest industrial listings.
Marob Strategies and Consulting DIFC Ltd. and Lilium Capital Group structured the US$1 billion program. It includes a completed and funded US$600 million private placement and a further US$400 million underwriting commitment to support the planned IPO. Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group, underwrote and funded the US$600 million private placement. Marob Strategies and Lilium Capital are now distributing the remaining underwriting participation across Global Africa, targeting sovereign wealth funds, governments, institutional investors, and other eligible investors. The advisers said investors have shown strong interest in the refinery, reflecting growing demand for major African energy assets with long-term economic potential. The program could also increase investment flows between African markets and support efforts to build a more integrated African capital market under the African Continental Free Trade Area (AfCFTA).
The US$1 billion underwriting program goes beyond raising capital for the IPO. It is intended to increase African ownership of a major energy asset, strengthen African capital markets, and support investment in refining, energy security, import substitution, and intra-African trade.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, described the transaction as an important step for the refinery and African capital markets. He said the completed US$600 million private placement and US$400 million underwriting commitment show investor confidence in the refinery’s strategic role. He also said the transaction will create an opportunity for African and Caribbean sovereign wealth funds, governments, and institutional investors to take part in the refinery’s planned IPO.
Professor Benedict Okey Oramah, Chairman of Marob Strategies, said the transaction shows strong investor interest in major African assets. He said Marob Strategies will continue working with sovereign wealth funds, governments, institutional investors, and other eligible investors across global Africa to distribute the underwriting participation. He added that the interest in the refinery demonstrates demand for investment opportunities linked to Africa’s energy and industrial sectors.
Simon Tiemtoré, Chairman of Lilium Capital Group, said the mandate reflects the firm’s role in connecting major African energy and infrastructure opportunities with institutional investors in Africa and international markets. He said mobilizing long-term capital for the Dangote Petroleum Refinery can support industrial development, strengthen African capital markets, and improve energy security. Lilium Capital will also continue looking for opportunities to mobilize institutional investment into other major African energy and infrastructure projects.
source: www.energyfocusreport.com
African Energy Council