Dangote Refinery Secures $1 Billion Backing Ahead of Planned IPO

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The planned Initial Public Offering (IPO) of the Dangote Petroleum Refinery & Petrochemicals (DPRP) 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 one of Africa’s most significant industrial listings.

The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded US$600 million private placement, alongside a further US$400 million underwriting commitment in support of the planned IPO.

The US$600 million private placement was underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.

Marob Strategies and Lilium Capital are now coordinating the distribution of the underwriting participation across Global Africa, engaging sovereign wealth funds, governments, institutional investors and other eligible investors. According to the advisers, the response has been strong, reflecting growing institutional appetite for large-scale African assets capable of generating long-term economic value.

The programme is also expected to catalyse significant intra-African capital flows and contribute to the development of a more integrated African capital market under the auspices of the African Continental Free Trade Area (AfCFTA).

Beyond raising capital, the US$1 billion underwriting programme is designed to deepen African capital markets, broaden ownership of a strategic African enterprise and demonstrate the capacity of African institutions to mobilise long-term capital for industrialisation, energy security, import substitution and trade integration.

Aliko Dangote, President and Chief Executive of Dangote Industries Limited, 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, noting that the transaction reflects confidence in the refinery’s strategic role while creating a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.

He added: “The successful completion of the private placement, together with the US$400 million 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.”

Professor Benedict Okey Oramah, Chairman of Marob Strategies, said the transaction demonstrates strong investor appetite for African-led capital market transactions that provide 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,” Oramah said.

He explained that Marob Strategies is now focused on disciplined distribution across Global Africa, 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 added.

Similarly, Simon Tiemtoré, Chairman of Lilium Capital Group, described the mandate as part of the firm’s broader effort 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,” Tiemtoré said.

He noted that mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery would support industrialisation, strengthen capital markets and contribute to sustainable economic growth across the continent.

“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,” he said.

Tiemtoré added that Lilium Capital was proud to support DPRP on the landmark transaction and looked forward to mobilising capital for more transformative projects capable of creating lasting value for Africa.

The successful completion of the US$600 million private placement and the additional US$400 million underwriting commitment therefore marks a significant development ahead of the planned IPO, while positioning the Dangote Petroleum Refinery as a potential catalyst for deeper African investment, industrial development and greater integration of the continent’s capital markets