President of Dangote Industries Limited, Aliko Dangote, has projected that shares of the Dangote Petroleum Refinery, currently offered at N525, could rise to N10,000 in the future, urging investors to consider the potential long-term value of the investment.
Dangote made the projection in a Hausa-language interview with Abis Fulani, published on Thursday, while discussing the refinery’s planned Initial Public Offering, assuring small-scale investors that they would receive priority in share allocation.
He said retail investors seeking to buy shares worth N50,000, N100,000 and other smaller amounts would be prioritised ahead of 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,” Dangote said.
He explained that institutional investors requesting large allocations would not necessarily receive all the shares they applied 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.
Dangote said the remaining shares would subsequently be distributed among other investors.
On the potential value of the shares, the businessman said the current offer price of N525 could rise substantially in the future.
“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.
He illustrated the potential gain by saying an investment of N5m could become worth more than N50m if the share eventually reached 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,” Dangote said.
He further disclosed that shareholders could opt to receive dividends in either naira or dollars, arguing that the dollar option could help investors cushion the impact of currency depreciation.
“The benefit of buying it is that holding this share will not prevent you from carrying out your regular work,” he said.
“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.”
Dangote said the dollar dividend option could be particularly beneficial to Nigerians with financial obligations abroad, including parents whose children study in the United Kingdom.
He recalled the sharp depreciation of the naira, noting that the exchange rate had moved from about N400 to the dollar to around N1,800.
“So your child won’t have to… avoid exchange rate shocks, like when rates moved from N400 up to N1,800,” he said.
“Most children were brought back home as a result. So what we want to prevent is that kind of situation.”
The Dangote Refinery IPO comprises 4.1 billion ordinary shares priced at N525 each, with full subscription expected to raise about N2.15tn.
The minimum subscription is 10 shares, costing N5,250, while the offer is scheduled to run from September 14 to October 13, 2026.
After the offer closes, applications will be processed and investors informed of their allotments. However, applying for a particular number of shares does not guarantee that investors will receive the full amount requested, particularly where the offer is oversubscribed.
The shares are expected to be listed on the Nigerian Exchange Main Board after the allotment process, with their subsequent market price determined by demand and supply.
Although Dangote projected that the shares could eventually reach N10,000, the N525 offer price does not guarantee any future market value or return.
The share price could rise or fall after listing depending on the refinery’s performance, refining margins, investor sentiment, demand and broader economic conditions.
Proceeds from the IPO are expected to support the refinery’s expansion, with the company planning to increase its refining capacity from about 650,000–700,000 barrels per day to 1.4 million barrels per day.
Never miss a moment! Get the stories shaping Nigeria, delivered straight to your phone. Follow Peoplesdaily Newspaper on WhatsApp for breaking news, exclusive reports, and the headlines everyone will be talking about, before anyone else.
