Marob Strategies and Lilium Capital have completed the first phase of a $1bn underwriting programme for Dangote Petroleum Refinery's planned initial public offering (IPO), which is likely to be one of the biggest flotations in African history.
The $1bn underwriting programme comprises a completed and funded $600m private placement and a $400m underwriting commitment in support of Dangote Petroleum Refinery & Petrochemicals FZE's (DPRP) planned IPO.
Underwriting is offered by financial firms to a company to guarantee the sale of its shares to investors. Pan‑African Refinery Investment SPV, a subsidiary of Lilium Capital, is serving as the underwriter.
The $400m IPO underwriting commitment "will be implemented upon the launch of the IPO, subject to market conditions, corporate and regulatory approvals, the execution of definitive documentation and compliance with applicable securities laws," the firms said.
Originally published by African Business.