President of Dangote Industries Limited, Aliko Dangote, has projected that shares of the Dangote Petroleum Refinery could rise significantly in value, saying the stock currently priced at N525 in its Initial Public Offering could eventually reach N10,000.
Dangote also assured small-scale investors interested in participating in the IPO that they would receive priority in the allocation of shares ahead of large institutional investors.
He made the remarks in Hausa during an interview with Abis Fulani, with the interview translated by Google Gemini. The interview was published on Thursday and gained wider attention on Saturday.
The Dangote Refinery IPO is expected to provide members of the public with an opportunity to acquire shares in one of Nigeria’s largest industrial projects while also allowing the company to raise additional capital.
Dangote said the allocation process would give consideration to retail investors seeking to invest relatively small amounts. According to him, investors seeking to purchase shares worth N50,000, N100,000 and other smaller amounts would be prioritized during the allocation process.
He explained that large institutional investors requesting substantial allocations would not necessarily receive all the shares they applied for if demand exceeds the available number.
Dangote said the remaining shares would subsequently be distributed among other categories of investors. The assurance is particularly significant for individual investors who may be concerned that they could be crowded out by institutions with substantially larger financial resources.
Speaking about the potential long-term value of the refinery shares, Dangote said investors should look beyond the current IPO price of N525.
He projected that the shares could eventually rise to N10,000, potentially delivering substantial returns to investors who hold the stock over time.
Using an investment of N5 million as an example, Dangote said an investor who bought shares at the current offer price could see the value of the investment rise to more than N50 million if the share price eventually reaches N10,000.
However, such a projection represents Dangote’s expectation rather than a guaranteed future market price. Once the shares are listed on the Nigerian Exchange, their market value will depend on factors including investor demand, company performance and broader market conditions.
Also Read:Â Dangote Refinery raises petrol price to N1,350 per litre
Dangote also highlighted dividends as another potential benefit for shareholders. He said shareholders could receive dividends in either naira or dollars, suggesting that the dollar option could provide a measure of protection against the effects of naira depreciation.
According to him, the ability to receive dividends in dollars could be particularly useful for Nigerians with financial obligations outside the country.
He cited parents paying school fees for children studying abroad as an example, saying dollar-denominated income could help reduce the impact of fluctuations in the exchange rate.
Dangote linked the argument to the significant depreciation of the naira against the US dollar in recent years. He recalled a period when the exchange rate moved from around N400 to the dollar to about N1,800, saying such movements created difficulties for families whose children were studying overseas.
The Dangote Petroleum Refinery IPO comprises 4.1 billion ordinary shares being offered at N525 per share. If the entire offer is subscribed, the company is expected to raise approximately N2.15 trillion.
The minimum subscription is 10 shares, meaning investors can participate with a minimum investment of 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 about the number of shares allocated to them.
Investors should note that applying for a specific number of shares does not guarantee that they will receive the entire quantity requested.
This is particularly important if the IPO becomes oversubscribed, as the available shares may have to be allocated among applicants according to the applicable allotment process.
Following the completion of the allotment process, the refinery shares are expected to be listed on the Nigerian Exchange Main Board.
Once listed, the market price will no longer be determined solely by the IPO offer price but will instead be influenced by demand and supply in the secondary market.
This means the shares could trade above or below the N525 offer price depending on investor sentiment and the company’s performance.
Dangote’s projection of a possible N10,000 share price has therefore generated interest ahead of the IPO, particularly among retail investors considering whether to participate in the offer.
The IPO represents a major development for Nigeria’s capital market and provides investors with an opportunity to take a direct equity position in the Dangote Petroleum Refinery.
For prospective investors, however, the potential for capital appreciation comes alongside normal investment risks, meaning Dangote’s projected future price should not be regarded as a guaranteed return.
The Nation
