The Dangote Petroleum Refinery and Petrochemicals (DPRP) has secured a $1 billion underwriting programme ahead of its planned Initial Public Offering (IPO), in a major step towards what could become one of Africa’s biggest industrial stock market listings.
The underwriting package comprises a fully funded $600 million private placement and a further $400 million underwriting commitment to support the planned public offering.
The programme was structured by Marob Strategies and Consulting DIFC Ltd in partnership with Lilium Capital Group.
According to the advisers, the $600 million private placement has been fully underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
Marob Strategies and Lilium Capital are now working to distribute underwriting participation across Africa, targeting sovereign wealth funds, governments, institutional investors and other qualified investors.
In a statement issued by Dangote Refinery on Tuesday, the advisers said the initiative had attracted strong investor interest, reflecting growing confidence in large-scale African industrial assets with the potential to deliver sustainable long-term returns.
They said the programme could also boost intra-African investment and contribute to the development of a more integrated capital market under the African Continental Free Trade Area (AfCFTA).
Beyond supporting the refinery’s planned IPO, the advisers said the transaction was designed to broaden African ownership of a strategic industrial asset while demonstrating the capacity of African institutions to mobilise long-term capital for industrialisation, energy security, import substitution and regional trade.
The completion of the underwriting programme is expected to further strengthen investor confidence as the Dangote Refinery moves closer to its planned listing, which is widely viewed as potentially one of the most significant capital market transactions in Africa.
President of Dangote Industries Limited, Aliko Dangote, described the transaction as an important milestone for both the refinery and African capital markets.
“This is an important milestone for DPRP and for African capital markets,” Dangote said.
He said the transaction demonstrated investor confidence in the refinery’s strategic role and would create opportunities for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.
Chairman of Marob Strategies, Prof. Benedict Oramah, said the transaction demonstrated strong appetite for African-led capital market deals that provide investors with access to transformative assets on the continent.
“Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors,” Oramah said.
He added that the level of interest confirmed investors’ appetite for African-led transactions involving strategic assets.
“The success of this transaction paves the way for many more such transactions in the future,” he said.
Chairman of Lilium Capital Group, Simon Tiemtore, said the mandate reflected the firm’s efforts to connect major African investment opportunities with institutional investors across Global Africa and international markets.
He said mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery would help support industrialisation, strengthen African capital markets and promote sustainable economic growth.
“We are proud to support DPRP on this landmark transaction and look forward to mobilising capital for more transformative projects that create lasting value for Africa,” Tiemtore said.
