DANGOTE REFINERY SECURES $1BN BACKING AHEAD OF PLANNED IPO

Dangote Petroleum Refinery and Petrochemicals has secured a $1 billion underwriting programme ahead of its planned Initial Public Offering, strengthening the company’s preparations for what could become one of Africa’s largest industrial listings.

The programme comprises a completed and funded $600 million private placement and an additional $400 million underwriting commitment linked to the planned IPO.

The $600 million placement was underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group, while Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group structured the programme.

The latest funding follows the refinery’s earlier $2.5 billion private equity placement, which attracted strong investor interest and valued the company at about $40 billion.

The refinery, located near Lagos, has a processing capacity of about 650,000 barrels per day and is one of the largest single-train refineries in the world.

The planned IPO is expected to broaden ownership of the refinery and deepen participation by Nigerian and African investors in the country’s downstream energy sector.

The company has also been pursuing expansion plans, including efforts to increase its refining capacity and strengthen its position as a major supplier of refined petroleum products to Nigeria and international markets.

The latest underwriting commitment is expected to provide additional financial support as the company prepares for the proposed share offering.

The development comes as investors continue to show strong interest in the refinery’s growth prospects and its expanding role in regional fuel supply.

The planned listing is subject to regulatory approvals and other requirements before the shares can be offered to the public.