Nigeria’s Dangote Refinery Secures $1 billion Underwriting Ahead of IPO

Bala Augie


– Advertisement –

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.



Get More of our proprietary news and analysis as MoneyCentral is now on WhatsApp Channels  Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!



Source link
Read Full Article by Bala Augie at moneycentral.com.ng
Source link

Share This Article
Leave a Comment
Home
Account
Shop
Community
Add. A Post