Dangote Petroleum Refinery & Petrochemicals (DPRP) has formalized a $1 billion underwriting programme, completing a $600 million funded private placement while securing a distinct $400 million underwriting commitment to backstop its planned initial public offering (IPO) on the Nigerian stock market.
The capital arrangement was structured by co-financial advisers Marob Strategies and Consulting DIFC Ltd alongside Lilium Capital Group. According to the structuring agents, the initial $600 million private placement was fully underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital.
The subsequent phase a $400 million underwriting commitment will be activated to support the refinery’s upcoming public offer, subject to market conditions and regulatory clearances. This commitment effectively derisks the launch by guaranteeing a base level of institutional participation before retail or broader market subscriptions open.
Following the initial funding, the co-advisers are actively coordinating the sell-down and distribution of the private placement shares, targeting sovereign wealth funds, governments, and institutional investors across Africa and the Caribbean.
Aliko Dangote, President of Dangote Industries Limited, characterized the programme as a critical milestone for expanding the refinery’s ownership structure while mobilizing intra-African capital in alignment with the African Continental Free Trade Area (AfCFTA) objectives.
This $1 billion financing mechanism follows a separate $2.5 billion private placement led earlier by the Africa Finance Corporation (AFC). The sequential capital raises aim to solidify the balance sheet of the $20 billion, 650,000-barrel-a-day facility ahead of what is projected to be one of the largest industrial IPOs in African history.
