The Dangote Petroleum Refinery and Petrochemicals has secured a $1 billion underwriting programme ahead of its planned initial public offering (IPO), marking a major step towards opening ownership of the giant Lekki-based refinery to a wider pool of investors.
The programme comprises a completed and funded $600 million private placement and an additional $400 million underwriting commitment in support of the proposed IPO, according to a statement issued on Tuesday.
The transaction was structured by Marob Strategies and Consulting, DIFC Ltd, and Lilium Capital Group.
The refinery said the $600 million private placement had been underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
The additional $400 million commitment is expected to provide further financial backing for the planned public offering, which could become one of Africa’s most significant industrial listings.
“The planned Initial Public Offering of the Dangote Petroleum Refinery & Petrochemicals has taken a significant step forward with the successful completion of a US$1 billion underwriting programme, strengthening the capital markets foundation for what could become Africa’s most consequential industrial listing,” the refinery said.
Marob Strategies and Lilium Capital are now coordinating the distribution of the underwriting participation across Global Africa, with sovereign wealth funds, governments, institutional investors, and other eligible investors being approached.
The advisers said the response had been strong, reflecting growing institutional appetite for large-scale African assets with potential to generate long-term economic value.
The refinery said the programme was designed to achieve more than raising capital, as it could help deepen African capital markets, broaden ownership of a strategic industrial asset, and demonstrate the ability of African institutions to mobilise long-term capital for industrialisation, energy security, import substitution, and trade integration.
It also said the transaction could catalyse intra-African capital flows and contribute to the development of a more integrated African capital market under the African Continental Free Trade Area (AfCFTA).
Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, described the transaction as a significant milestone for the refinery and African capital markets.
“This is an important milestone for DPRP and for African capital markets,” Dangote said.
He said the successful completion of the private placement, alongside the $400 million underwriting commitment, demonstrated investor confidence in the refinery’s strategic importance.
Dangote added that the transaction had created a platform for broader participation by African and Caribbean sovereign wealth funds, governments, and institutional investors across Global Africa.
Benedict Oramah, a principal and chairman of Marob Strategies, said the transaction demonstrated strong appetite for African-led capital-market deals that give investors 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 said the level of interest confirmed growing demand for major African investment opportunities and could pave the way for similar transactions in the future.
Simon Tiemtoré, chairman of Lilium Capital Group, said the mandate formed part of the firm’s broader effort to connect major African investment opportunities with institutional investors across Global Africa and international markets.
The planned IPO is expected to widen participation in the ownership of the Dangote refinery while strengthening its access to long-term capital as the facility expands its role in Nigeria’s domestic petroleum supply and the wider African energy market.
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