Dangote Refinery secures $1 billion underwriting backing ahead of planned IPO in Lagos

Advisers say Nigeria's Dangote Refinery has a US$1 billion underwriting programme behind its planned Lagos listing - US$600 million already funded and US$400 million promised for the IPO itself. The post Dangote Refinery IPO in Nigeria Gets US$1 Billion Backing appeared first on The Rio Times.

By Udeme Akpan  Dangote Petroleum Refinery & Petrochemicals FZE, DPRP, has secured $1 billion in underwriting backing from Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group ahead of its planned initial public offering, IPO. The $1 billion programme comprises a completed and funded $600 million private placement and a $400 million underwriting commitment for […] The post Dangote Refinery IPO gets $1bn underwriting backing from Marob, Lilium appeared first on Vanguard News.

Dangote Petroleum Refinery says it has successfully completed a $1 billion underwriting programme ahead of its planned initial public offering (IPO).   An underwriting programme is an arrangement where an investor or financial institution commits to supporting a company’s fundraising initiative.   According to a statement on Tuesday, the programme was structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group.   The refinery said the programme comprises a completed and funded $600 million private placement and a further $400 million underwriting commitment in support of its planned IPO.   “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 statement reads.   “The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded US$600 million private placement and a further US$400 million underwriting commitment in support of the refinery’s planned IPO.   “The US$600 million private placement has been underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.”   The Dangote refinery said 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.   “The response, according to the advisers, has been strong, reflecting growing institutional appetite for large-scale African assets capable of generating long-term economic value,” the refinery said.   “The programme is also expected to catalyse significant intra-African capital flows and help pave the way towards a more integrated African capital market under the auspices of the African Continental Free Trade Area (“AfCFTA”).”   According to the statement, the $1 billion underwriting programme is designed to be more than a capital-raising exercise.   “It is expected to help deepen African capital markets, broaden ownership of a strategic African enterprise and demonstrate how African institutions can mobilise long-term capital for industrialisation, energy security, import substitution and trade integration,” the refinery said.   ‘UNDERWRITING PROGRAMME IMPORTANT MILESTONE FOR AFRICAN CAPITAL MARKETS’ Speaking on the development, Aliko Dangote, president and chief executive officer (CEO) 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.   The billionaire said the transaction reflects confidence in the refinery’s strategic role and creates 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 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,” Dangote said.   “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.”   Benedict Oramah, a processor and chairman of Marob Strategies, said the transaction demonstrated the appetite for African-led capital markets transactions, providing 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,” he said.   “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.”   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.