By Opeyemi Adelakun
President of Dangote Industries Limited, Aliko Dangote, has projected that shares of Dangote Petroleum Refinery could rise from the current offer price of N525 to as much as N10,000 in the future.
Dangote also assured small-scale investors seeking to participate in the refinery’s Initial Public Offering that they would receive priority during the allocation process.
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.
According to him, retail investors seeking to purchase relatively small quantities of shares would be prioritised over large institutional investors.
“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.
“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 said any shares left after the priority allocation to smaller investors would subsequently be distributed among other investors.
Dangote said the refinery’s shares, currently offered at N525, could appreciate significantly over time.
“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.
“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.”
He also said shareholders would have the option of receiving dividends in either naira or US dollars.
According to him, the dollar-denominated option could help investors who have financial obligations outside Nigeria manage the effects of exchange-rate volatility.
“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.
“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, citing a movement in the exchange rate from about N400 to N1,800 to the dollar.
“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. If fully subscribed, the offer is expected to raise about N2.15tn.
The minimum subscription is 10 shares, costing N5,250, while the offer is scheduled to open on September 14 and close on October 13, 2026.
Following the close of the offer, applications will be processed and investors will be informed of their allotments. Investors who apply for a particular number of shares are not guaranteed the full quantity, 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 value will be determined by prevailing demand and supply.
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