Dangote Refinery Gets $1bn Underwriting Support Ahead of Potential IPO

The Dangote Petroleum Refinery and Petrochemicals has secured a $1 billion underwriting package as preparations continue for a potential initial public offering (IPO) that could become one of Africa’s biggest industrial listings.
The funding arrangement was put together by Marob Strategies and Consulting DIFC Ltd in partnership with Lilium Capital Group.
The package comprises a $600 million private placement, which has already been fully financed, alongside a further $400 million underwriting commitment intended to support the proposed IPO.
The private placement was funded entirely by Pan-African Refinery Investment SPV, an investment vehicle affiliated with Lilium Capital.
Marob Strategies and Lilium Capital are now seeking investors for the remaining $400 million commitment, targeting sovereign wealth funds, government-backed investment entities and major institutional investors across Africa.
The advisers said investor interest has been strong, reflecting growing appetite for large-scale African assets capable of delivering long-term returns.
They said the transaction could also contribute to deeper African capital markets by encouraging more investment flows between countries and supporting the objectives of the African Continental Free Trade Area (AfCFTA).
According to the advisers, the financing structure is designed to broaden ownership opportunities in one of Africa’s most significant industrial projects and demonstrate the capacity of African financial institutions to mobilise capital for major investments in energy, refining, infrastructure and industrial development.
Dangote Hails Landmark Financing
Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, described the transaction as an important milestone for both the refinery and Africa’s financial markets.
He said the completed private placement and additional underwriting commitment reflected investor confidence in the refinery’s strategic importance to Nigeria and the wider African economy.
Dangote also commended Marob Strategies and Lilium Capital for developing a structure capable of attracting participation from sovereign wealth funds, governments and institutional investors across Africa and the Caribbean.
Benedict Okey Oramah, Chairman of Marob Strategies and former President of the African Export-Import Bank, said the transaction demonstrated strong investor demand for large African assets when investment opportunities are properly structured and led from within the continent.
He said the firm would focus on carefully allocating the remaining commitment among qualified investors, including sovereign funds, governments and institutional buyers.
Simon Tiemtoré, Chairman of Lilium Capital Group, said the transaction aligns with the firm’s strategy of connecting major African assets with institutional capital from within and outside the continent.
He described the refinery as an example of the type of long-term investment capable of supporting industrialisation, strengthening local capital markets and contributing to sustainable economic growth.
IPO Could Become Major African Listing
Located outside Lagos, the Dangote refinery has a processing capacity of 650,000 barrels per day and is central to Nigeria’s efforts to reduce dependence on imported petroleum products.
Although an IPO has been anticipated for some time, no specific listing date or formal timetable has been announced.
If completed, the offering would be closely watched by investors globally and could provide a major test of appetite for direct investment in Africa’s industrial sector.
The potential listing would also give investors an opportunity to gain equity exposure to one of the continent’s largest energy projects at a time when global investors remain selective about frontier and emerging markets.
Details regarding the proposed IPO, including valuation, share pricing and timing, have not been disclosed.
Marob Strategies and Lilium Capital also did not identify the sovereign wealth funds or institutional investors considering the remaining $400 million commitment, but said discussions with potential investors remain active.