AELEX plays key role in Dangote Refinery’s $1.5bn IPO

By Henry Ojelu

LAGOS — The approximately US$1.5 billion Initial Public Offering, IPO, of Dangote Petroleum Refinery & Petrochemicals FZE has been completed, with AELEX acting as Solicitors to the Offer in the landmark transaction.

The offering is the largest single IPO undertaken in Africa and the first public offering by a Free Zone Entity, FZE, in Nigeria.

In a statement, the management of AELEX said the transaction marked a significant development in Nigeria’s capital market and provided a new route for large-scale businesses operating under the Free Zone framework to access public capital.

According to the firm, the transaction also builds on its longstanding relationship with the Dangote Industries Group.

AELEX said it previously acted as solicitor to the issuer in the N60 billion IPO of Dangote Sugar Refinery Plc.

The firm also said it had advised on other major projects within the group, including the US$798 million syndicated limited-recourse financing for the Obajana Cement Project involving international development and export finance institutions.

The statement added that AELEX advised on aspects of the establishment and operation of the Dangote Refinery project within Nigeria’s Free Zone framework.

On the latest IPO, the management said the offering would broaden public participation in the refinery project while providing an additional source of capital for the industrial development.

It said the transaction also demonstrated the capacity of Nigeria’s capital market to support large-scale industrial projects.

The Dangote Refinery IPO is expected to further widen investment participation in the project and contribute to the development of Nigeria’s capital market.

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