The planned Initial Public Offering of the Dangote Petroleum Refinery and Petrochemicals has received a $1bn underwriting programme, creating a substantial institutional funding base around one of Nigeria’s biggest industrial investments.
The arrangement consists of a $600m private placement that has been completed and funded, alongside a $400m underwriting commitment for the proposed IPO. Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group structured the programme.
Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group, underwrote and funded the $600m private placement and provided the additional $400m commitment.
The focus has now shifted to investor distribution. Marob Strategies and Lilium Capital are engaging sovereign wealth funds, governments, institutional investors and other eligible investors across Global Africa, including African and Caribbean institutions.
The advisers said the response has been strong, reflecting institutional interest in large-scale African assets with the capacity to generate long-term economic value.
By directing institutional funds towards a major Nigerian industrial asset, the programme is expected to stimulate intra-African capital flows and contribute to a more integrated African capital market under the African Continental Free Trade Area.
Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, said the transaction represented 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 completed placement and underwriting commitment demonstrate confidence in the refinery’s strategic role, while creating room for participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.
Professor Benedict Okey Oramah, Chairman of Marob Strategies, said the deal demonstrates the potential for African-led capital-market transactions to connect institutional investors with transformative assets on the continent.
He said Marob Strategies is pursuing disciplined distribution across Global Africa and engaging the investor groups targeted by the programme.
“The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent,” Oramah said.
He added that the transaction could help open the way for more deals of a similar nature.
For Simon Tiemtoré, Chairman of Lilium Capital Group, the refinery transaction forms part of the firm’s effort to connect major African opportunities with institutional investors in Global Africa and international markets.
“This mandate reflects Lilium Capital’s commitment to connecting world-class African opportunities with institutional investors across Global Africa and international markets,” Tiemtoré said.
He said mobilising long-term funding for strategic projects such as the Dangote refinery supports industrialisation, strengthens capital markets and contributes to sustainable economic growth across Africa.
The $1bn programme therefore combines immediate financing already secured with additional backing for the refinery’s proposed market debut. As distribution continues, the transaction is set to bring a wider pool of institutional capital into a major Nigerian industrial project while testing the depth of investor demand for African-led assets.
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