Dangote Petroleum Refinery says it has successfully completed a $1 billion underwriting programme ahead of its planned initial public offering (IPO).
An underwriting programme is an arrangement where an
investor or financial institution commits to supporting a company’s fundraising
initiative.
According to a statement on Tuesday, the programme was
structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital
Group.
The refinery said the programme comprises a completed and
funded $600 million private placement and a further $400 million underwriting
commitment in support of its planned IPO.
“The planned Initial Public Offering of the Dangote
Petroleum Refinery & Petrochemicals has taken a significant step forward
with the successful completion of a US$1 billion underwriting programme,
strengthening the capital markets foundation for what could become Africa’s
most consequential industrial listing,” the statement reads.
“The programme, structured by Marob Strategies and
Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded
US$600 million private placement and a further US$400 million underwriting
commitment in support of the refinery’s planned IPO.
“The US$600 million private placement has been underwritten
and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium
Capital Group.”
The Dangote refinery said Marob Strategies and Lilium
Capital are now coordinating the distribution of the underwriting participation
across Global Africa, engaging sovereign wealth funds, governments,
institutional investors, and other eligible investors.
“The response, according to the advisers, has been strong,
reflecting growing institutional appetite for large-scale African assets
capable of generating long-term economic value,” the refinery said.
“The programme is also expected to catalyse significant
intra-African capital flows and help pave the way towards a more integrated
African capital market under the auspices of the African Continental Free Trade
Area (“AfCFTA”).”
According to the statement, the $1 billion underwriting
programme is designed to be more than a capital-raising exercise.
“It is expected to help deepen African capital markets,
broaden ownership of a strategic African enterprise and demonstrate how African
institutions can mobilise long-term capital for industrialisation, energy
security, import substitution and trade integration,” the refinery said.
‘UNDERWRITING PROGRAMME IMPORTANT MILESTONE FOR AFRICAN CAPITAL MARKETS’
Speaking on the development, Aliko Dangote, president and
chief executive officer (CEO) of Dangote Industries Limited, described the
transaction as an important milestone for both the refinery and African capital
markets.
“This is an important milestone for DPRP and for African
capital markets,” Dangote said.
The billionaire said the transaction reflects confidence in
the refinery’s strategic role and creates a platform for broader participation
by African and Caribbean sovereign wealth funds, governments, and institutional
investors across Global Africa.
“The successful completion of the private placement,
together with the US$400 million underwriting commitment provided by
Pan-African Refinery Investment SPV in support of the planned IPO, reflects
confidence in the refinery’s strategic role,” Dangote said.
“The work undertaken by Marob Strategies and Lilium Capital
has also created a platform for broader participation by African and Caribbean
sovereign wealth funds, governments and institutional investors across Global
Africa.”
Benedict Oramah, a processor and chairman of Marob
Strategies, said the transaction demonstrated the appetite for African-led
capital markets transactions, providing access to transformative assets on the
continent.
“Marob Strategies is now focused on disciplined distribution
across Global Africa and is engaging sovereign wealth funds, governments,
institutional investors and other eligible investors,” he said.
“The level of interest confirms the appetite for African-led
capital markets transactions that provide investors with access to
transformative assets on the continent. The success of this transaction paves
the way for many more such transactions in the future.”
Simon Tiemtoré, chairman of Lilium Capital Group, described
the mandate as part of the firm’s efforts to connect major African investment
opportunities with institutional investors across Global Africa and
international markets.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com