LAGOS, Nigeria — The planned initial public offering (IPO) of Dangote Petroleum Refinery & Petrochemicals has moved closer to the capital markets after the company secured a $1 billion underwriting programme, strengthening the financing structure for a potential landmark African industrial listing.
The programme, arranged by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded $600 million private placement and a further $400 million underwriting commitment to support the refinery’s planned IPO.
The $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, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.
The advisers said the response has been strong, reflecting growing institutional interest in large-scale African assets with the potential to generate long-term economic value.
Beyond raising capital for Dangote Petroleum Refinery & Petrochemicals, the $1 billion programme is designed to broaden African investor participation in a strategic energy asset while supporting deeper integration of the continent’s capital markets.
The transaction could also encourage greater intra-African capital flows and contribute to the development of a more integrated African investment market under the African Continental Free Trade Area (AfCFTA) framework.
The planned IPO comes as the Dangote refinery assumes a growing role in Nigeria’s efforts to expand domestic refining capacity, reduce dependence on imported petroleum products and strengthen energy security.
The refinery, located in Lagos, is Africa’s largest oil refinery and one of the continent’s most significant privately owned industrial projects.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, described the underwriting programme as a major milestone for both the refinery and Africa’s 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 and the additional $400 million underwriting commitment reflected investor confidence in the refinery’s strategic importance.
According to Dangote, the transaction also creates an opportunity for African and Caribbean sovereign wealth funds, governments and institutional investors to participate in the refinery’s ownership structure.
He commended Marob Strategies and Lilium Capital for creating a platform capable of attracting broader participation from investors across Global Africa.
Professor Benedict Okey Oramah, Chairman of Marob Strategies, said the transaction demonstrated strong investor appetite for African-led capital markets deals linked to transformative assets.
He said Marob Strategies would focus on disciplined distribution of the underwriting participation across Global Africa, targeting 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,” Oramah said.
He added that the transaction could serve as a template for additional large-scale African capital markets deals.
Simon Tiemtoré, Chairman of Lilium Capital Group, said the mandate reflected the firm’s strategy of connecting major African investment opportunities with institutional investors in Africa and international markets.
He said mobilising long-term capital for strategic assets such as the Dangote refinery could support industrialisation, deepen African capital markets and promote sustainable economic growth.
“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,” Tiemtoré said.
The $1 billion underwriting programme provides an important financial foundation for Dangote Refinery’s proposed IPO, although the timing, structure and final terms of any public offering will depend on subsequent regulatory and capital-market processes.
If completed, the listing could rank among the most significant industrial IPOs in Africa, potentially widening domestic and international investor access to one of the continent’s most strategically important energy assets.
