•Dangote Refinery
President of Dangote Industries Limited, Aliko Dangote, has projected that shares of the Dangote Petroleum Refinery, currently priced at N525 in its Initial Public Offering, could rise to N10,000 in the future.
Dangote also assured small-scale investors seeking to participate in the IPO that they would be prioritised in the allocation of shares ahead of large institutional investors.
He made the remarks in Hausa during an interview with Abis Fulani, translated by Google Gemini, while discussing the planned IPO and its potential benefits to investors.
The interview was published on Thursday but gained traction today.
According to Dangote, retail investors seeking to purchase shares worth N50,000, N100,000 and other smaller amounts would receive priority during the allocation process.
“When you do something like this, what is called an IPO, all the small-scale investors are the ones who will be given priority first,” he said.
“The big institutional investors who request large allocations will not get everything they ask for. But the small retail investors who want to buy N50,000 worth, or some buying N100,000 worth, and so on, they are the ones who will be given priority allocations.”
He added that the remaining shares would subsequently be distributed among other investors.
On the potential value of the refinery shares, Dangote said the current N525 offer price could appreciate significantly over time, projecting that it could eventually reach N10,000.
“As I was saying, this share, if you look at it, we are currently at N525. A day will come when this share will reach N10,000,” he said.
“Therefore, if you hold it, having bought it, and it rises to N10,000, where you previously invested N5m, it will now be worth over N50m. You see, you have become wealthy.”
Dangote, however, noted that shareholders would also benefit from dividends, which he said could be paid in either naira or dollars.
He said the dollar option could help investors protect themselves against the impact of naira depreciation, particularly Nigerians with financial obligations abroad.
“The benefit of buying it is that holding this share will not prevent you from carrying out your regular work. You hold this share, and when dividends are paid, you won’t need to fear currency devaluation,” he said.
“That is because you can choose to receive your dividend in Naira or in Dollars. If you have a child studying at a school in England, for example, even if there is economic instability or currency devaluation, may God protect us, having this means what you receive is in Dollars.”
Dangote recalled the sharp depreciation of the naira against the dollar, saying the exchange rate had risen from about N400 to the dollar to N1,800.
“So your child won’t have to… avoid exchange rate shocks, like when rates moved from N400 up to N1,800.
“Most children were brought back home as a result. So what we want to prevent is that kind of situation,” he said.
The Dangote Refinery IPO comprises 4.1 billion ordinary shares priced at N525 each. A full subscription is expected to raise approximately N2.15 trillion, while the minimum subscription is 10 shares, costing N5,250.
The offer is scheduled to run from September 14 to October 13, 2026.
After the offer closes, applications will be processed and investors will be informed of their allotments. Applying for a specific number of shares does not guarantee that an investor will receive the full amount requested, particularly if the offer is oversubscribed.
The shares are expected to be listed on the Nigerian Exchange Main Board after the allotment process, after which their market price will be determined by demand and supply.
