Nigerian billionaire Aliko Dangote's refinery secures $1 billion backing ahead of planned IPO

Aliko Dangote's petroleum refinery has secured a $400 million underwriting commitment ahead of a planned stock market listing that is expected to raise about $2 billion, as the Nigerian billionaire moves to broaden ownership of the plant and fund its expansion.

The commitment comes from Marob Strategies and Consulting DIFC and Lilium Capital Group, which have been mandated as co-financial advisers to Dangote Petroleum Refinery and Petrochemicals, according to a statement. The refinery is the largest crude oil processing plant on the continent.

The advisers said the $400 million formed part of a broader $1 billion underwriting program that also includes a $600 million private placement they described as completed and funded. That placement was underwritten by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.

Marob and Lilium said they are now distributing the underwriting participation across what they termed Global Africa, engaging sovereign wealth funds, governments, institutional investors and other eligible investors. The advisers characterized early interest as strong, though the final size and timing of the offering have not been confirmed.

Dangote, president and chief executive of Dangote Industries, said the transaction reflected confidence in the refinery's strategic role. He added that it created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors.

The refinery, located near Lagos, has been central to Nigeria's effort to end its dependence on imported fuel. A public listing would give investors across the continent exposure to one of Africa's most significant industrial assets, while the fresh capital is earmarked in part for expanding the facility.

The advisers framed the program as more than a fundraising exercise, saying it was intended to deepen African capital markets and show how local institutions can mobilize long-term capital for industrialization, energy security and trade integration. They linked the effort to the African Continental Free Trade Area.

Benedict Okey Oramah, chairman of Marob Strategies, said the level of interest confirmed appetite for African-led transactions that give investors access to transformative assets, and predicted more such deals would follow.

Simon Tiemtoré, chairman of Lilium Capital Group, said the mandate reflected the firm's aim of connecting major African opportunities with institutional investors on the continent and abroad. The listing would rank among the largest on the Nigerian market, though the company has not disclosed a firm date.