The Dangote Petroleum Refinery and Petrochemicals has secured a $1 billion underwriting programme ahead of its planned Initial Public Offering (IPO).
The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded $600 million private placement and an additional $400 million underwriting commitment for the proposed IPO.
In a statement on Tuesday, Dangote Group said the $600 million private placement was underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
It added that Marob Strategies and Lilium Capital are coordinating the distribution of the remaining underwriting participation across Global Africa, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.
According to the advisers, investor response has been strong, reflecting growing institutional appetite for large-scale African assets with the potential to generate long-term economic value.
The programme is also expected to boost intra-African capital flows and contribute to the development of a more integrated African capital market under the African Continental Free Trade Area.
Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, described the transaction as an important 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 transaction reflected investor confidence in the refinery’s strategic role and created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.
“The successful completion of the private placement, together with the $400m underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role.
“The work undertaken by Marob Strategies and Lilium Capital has also created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa,” he said.
Benedict Okey Oramah, Chairman of Marob Strategies, said the transaction demonstrated growing appetite for African-led capital market transactions that provide investors with access to transformative assets on the continent.
“As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition. Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors.
“The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent. The success of this transaction paves the way for many more such transactions in the future,” he said.
Also, Simon Tiemtoré, Chairman of Lilium Capital Group, described the mandate as part of the firm’s efforts to connect major African investment opportunities with institutional investors across 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.
“By mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery, we are supporting industrialisation, strengthening capital markets and contributing to sustainable economic growth across the continent.
“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,” he said.