Dangote Refinery Completes $1 Billion IPO Underwriting, Targets October Listing in Potential African Record

en.Wedoany.com Reported - Dangote Petroleum Refinery and Petrochemicals has completed a $1 billion IPO underwriting plan, paving the way for its listing on the Nigerian Exchange. The plan was structured with Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group serving as joint financial advisors and structurers.

The underwriting plan consists of two components: a $600 million private placement that has been fully subscribed and settled, underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital; and a $400 million underwriting commitment that will take effect upon the official launch of the IPO, subject to regulatory approvals, market conditions, and the completion of transaction documents. Marob Strategies and Lilium Capital are currently allocating the remaining underwriting portions to sovereign wealth funds, governments, institutional investors, and other qualified investors across Africa and the Caribbean.

It has been revealed that Dangote Refinery has filed its IPO application with Nigeria's Securities and Exchange Commission (SEC), targeting a maximum fundraising amount of up to $5 billion. The company aims to list in October 2026, with the specific timeline subject to regulatory approval. If completed as planned, the IPO would become the largest listing transaction in African history. Aliko Dangote, President and Chief Executive Officer of Dangote Industries, stated that this transaction marks a significant milestone for the refinery and Africa's capital markets.

Dangote Refinery, located in Lagos, had a construction cost of approximately $20 billion. The facility currently has a refining capacity of approximately 650,000 barrels per day, with recent actual throughput reaching approximately 700,000 barrels per day. The company plans to double capacity to 1.4 million barrels per day through the IPO and debt financing. The Nigerian National Petroleum Company (NNPC) holds a slightly more than 7% stake in the facility.

Since the U.S. and Israel launched an attack on Iran on February 28 and Iran blocked the Strait of Hormuz, the global fuel supply landscape has undergone dramatic changes. Dangote Refinery had just reached full capacity at that time and quickly became Europe's largest supplier of jet fuel and diesel. According to The New York Times, the facility exported jet fuel to the United States for the first time this year and became the world's largest single exporter of jet fuel in April and May. Devakumar Edwin, Vice President of Dangote Industries, stated that traders and governments around the world, especially in Africa, called seeking fuel purchases after the war broke out. Dangote is currently planning further expansion, including building a refinery in Kenya and planning a pipeline spanning 11 African countries.