Nigeria’s Dangote Refinery has secured \u200ca $1 billion underwriting programme for its planned stock market listing that could become\u00a0Africa’s largest IPO, marking a major step toward bringing the continent’s biggest refinery to investors.<\/p>\n
The underwriting comprises a fully funded $600 million tranche for the refinery’s completed private placement and \u200ba further $400 million commitment to support the planned initial public offering, the deal’s co-financial advisers Marob \u200bStrategies and Lilium Capital said on Tuesday.<\/p>\n
Dubai-based advisory firm Marob and Washington-based investment group \u2060Lilium said it was implemented through Pan-African Refinery Investment, a special purpose vehicle and subsidiary of Lilium.<\/p>\n
In \u200bIPO transactions, underwriting is a service offered by capital firms and investment banks to a company to guarantee \u200bthe sale of its shares to investors.<\/p>\n
Majority-owned by Africa’s richest man Aliko Dangote, the refinery has submitted an application for a\u00a0$5 billion IPO to Nigeria’s Securities and Exchange Commission, a source familiar with the matter told Reuters two weeks ago, although \u200bthe final size of the offering has yet to be determined.<\/p>\n
“The successful completion of the private placement, together \u200bwith the $400 million underwriting commitment … in support of the planned IPO, reflects confidence in the refinery’s strategic role,” Aliko Dangote \u200csaid \u2060in the joint statement.<\/p>\n
OCTOBER LISTING<\/strong><\/p>\n The $20 billion facility near Lagos, which processes about 700,000 barrels of crude a day, has emerged as a major beneficiary of supply disruptions linked to the\u00a0Iran war,exporting jet fuel across Africa and into Europe as buyers sought alternative supplies.<\/p>\n That has sparked widespread interest in the sale of shares in the \u200bplant, African market participants say.<\/p>\n The $400 \u200bmillion underwriting commitment would \u2060be implemented upon the launch of the IPO, subject to market conditions and regulatory approvals, Marob and Lilium said.<\/p>\n The public offering is expected to receive regulatory approval \u200bin the coming weeks and to list on the Nigerian market in October, \u200bwith other \u2060African capital markets also involved.<\/p>\n","protected":false},"excerpt":{"rendered":" Nigeria’s Dangote Refinery has secured \u200ca $1 billion underwriting programme for its planned stock market listing that could become\u00a0Africa’s largest IPO, marking a major step toward bringing the continent’s biggest refinery to investors. The underwriting comprises a fully funded $600 million tranche for the refinery’s completed private placement and \u200ba further $400 million commitment to […]<\/p>\n","protected":false},"author":6,"featured_media":21750,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":9,"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_featured":"1","show_post_meta":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_comment_section":"1","number_popup_post":"1","show_post_related":"1","show_inline_post_related":"1"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0","source_name":"Reuters","subtitle":""},"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[2831,2362,27],"tags":[1096,175],"class_list":["post-21789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-featured","category-west-africa","tag-dangote-refinery","tag-nigeria"],"_links":{"self":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/21789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/comments?post=21789"}],"version-history":[{"count":1,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/21789\/revisions"}],"predecessor-version":[{"id":21790,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/21789\/revisions\/21790"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media\/21750"}],"wp:attachment":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media?parent=21789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/categories?post=21789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/tags?post=21789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}