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Nigeria’s Dangote Refinery has secured a $1 billion underwriting programme for its planned stock market listing that could become Africa’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 a further $400 million commitment to support the planned initial public offering, the deal’s co-financial advisers Marob Strategies and Lilium Capital said on Tuesday.
Dubai-based advisory firm Marob and Washington-based investment group Lilium said it was implemented through Pan-African Refinery Investment, a special purpose vehicle and subsidiary of Lilium.
In IPO transactions, underwriting is a service offered by capital firms and investment banks to a company to guarantee the sale of its shares to investors.
Majority-owned by Africa’s richest man Aliko Dangote, the refinery has submitted an application for a $5 billion IPO to Nigeria’s Securities and Exchange Commission, a source familiar with the matter told Reuters two weeks ago, although the final size of the offering has yet to be determined.
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Read Full Article by Bala Augie at moneycentral.com.ng
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