Dangote Petroleum Refinery & Petrochemicals FZE, DPRP, has secured $1 billion in underwriting support from Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group ahead of its planned Initial Public Offering, IPO.
The programme consists of a completed and funded $600 million private placement and a further $400 million underwriting commitment for the proposed IPO.
Marob Strategies and Lilium Capital, which are serving as co-financial advisers and structuring agents for Global Africa, said the completion of the $600 million private placement represents the first stage of the underwriting programme.
Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital, is acting as the underwriter under the arrangement.
President and Chief Executive Officer of Dangote Industries Limited, Alhaji Aliko Dangote, described the development as an important milestone for the refinery and African capital markets.
Dangote said the completed private placement and the additional $400 million underwriting commitment demonstrate investor confidence in the strategic importance of the refinery.
He added that the work by Marob Strategies and Lilium Capital had created an avenue for greater participation by African and Caribbean sovereign wealth funds, governments and institutional investors.
Chairman of Marob Strategies and Consulting DIFC Ltd, Professor Benedict Okey Oramah, said the firm was focused on distributing the investment opportunity across Global Africa.
He said Marob was engaging sovereign wealth funds, governments, institutional investors and other eligible investors, adding that the interest shown demonstrates demand for African-led capital market transactions involving major strategic assets.
The Chairman of Lilium Capital Group, Mr Simon Tiemtoré, said the mandate reflected the firm’s commitment to linking major African investment opportunities with institutional investors in Africa and international markets.
Tiemtoré said mobilising long-term capital for strategic projects such as the Dangote Petroleum Refinery would support industrialisation, deepen capital markets and contribute to sustainable economic growth across Africa.
The two firms said they were coordinating the sell-down of the $600 million underwriting participation while engaging sovereign wealth funds, governments, institutional investors and other eligible investors across Africa and the Caribbean.
However, the planned IPO has not yet been launched.
The $400 million underwriting commitment remains subject to market conditions, corporate and regulatory approvals, the execution of definitive agreements and compliance with applicable securities laws.
