Dangote: N525 refinery shares can hit N10,000
By Udeme Akpan
Aliko Dangote, president of Dangote Industries Limited, has projected that shares of the Dangote Petroleum Refinery, currently offered at 525 naira each, could eventually rise to 10,000 naira.
In an interview conducted in Hausa with Abis Fulani, Dangote discussed the forthcoming Initial Public Offering (IPO) and emphasized the potential benefits for investors. He reassured small-scale investors that they would receive priority in the allocation of shares during the IPO.
Dangote stated that retail investors looking to buy smaller amounts of shares will be given precedence over larger 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,” he said. He explained that large institutional investors requesting significant allocations would not receive everything they seek, whereas small retail investors, those looking to invest 50,000 to 100,000 naira, would be prioritized.
Regarding the projected increase in share value, Dangote indicated that investors could realize substantial gains following the IPO listing. “As I was saying, this share, if you look at it, we are currently at 525 naira. A day will come when this share will reach 10,000 naira,” he noted. He further illustrated the potential wealth creation, stating, “if you hold it, having bought it, and it rises to 10,000 naira, where you previously invested 5 million naira, it will now be worth over 50 million naira.”
Dangote also highlighted the option for shareholders to receive dividends in either naira or dollars, a feature he believes could protect investors against currency depreciation. “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.
He mentioned that the dollar option may be particularly advantageous for Nigerians with financial commitments abroad. “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,” he explained. Dangote referenced the past depreciation of the naira, noting, “Your child won’t have to avoid exchange rate shocks, like when rates moved from 400 naira up to 1,800 naira.”
The IPO for the Dangote Refinery will include 4.1 billion ordinary shares priced at 525 naira each. A full subscription would raise approximately 2.15 trillion naira, while the minimum subscription of 10 shares amounts to 5,250 naira. The offer is set to run from September 14 to October 13, 2026.
