Nigeria’s Dangote Petroleum Refinery has secured a $1 billion underwriting programme ahead of its planned initial public offering, strengthening the capital markets foundation for what could become Africa’s largest IPO, as reported by CNBC Africa and ThisDay. The programme comprises a fully funded $600 million private placement and a further $400 million underwriting commitment to support the planned public offering.
The financing was structured by Marob Strategies and Consulting DIFC and Lilium Capital Group through Pan African Refinery Investment, a Lilium subsidiary. The refinery has applied to Nigeria’s Securities and Exchange Commission for a potential $5 billion IPO, although the final size remains subject to regulatory approval and market conditions. The listing is currently expected to take place on the Nigerian market in October, according to Reuters.
The development comes shortly after a $2.5 billion private placement that valued the refinery at about $40 billion and attracted demand 3.7 times the amount offered. The 700,000 barrel per day facility, majority owned by Aliko Dangote, has also benefited from increased international demand for its refined products, including jet fuel exports to African and European markets.
For Nigeria’s capital market, the planned listing could be transformative, potentially broadening public ownership of one of Africa’s most significant industrial assets while mobilising long term domestic and international capital. Dangote also plans to expand refining capacity to 1.4 million barrels per day within three years, making the IPO an important potential source of funding for the refinery’s next phase of growth.
