Billionaire businessman says small investors will get priority in Dangote Refinery IPO as offer opens at N525 per share….
President of Dangote Industries Limited, Aliko Dangote, has projected a major increase in the value of shares in the Dangote Petroleum Refinery, saying the N525 offer price could eventually rise to N10,000.
Dangote also said small-scale investors would be given priority in the allocation of shares under the refinery’s planned Initial Public Offering.
He made the remarks an interview and has attracted attention as investors prepare for the refinery’s share offer.
Explaining how the allocation would work, Dangote said retail investors seeking to invest relatively small 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.
“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 would then be distributed among other investors.
‘A day will come when this share will reach N10,000’
Dangote also offered an ambitious outlook for the refinery’s stock, suggesting that its value could increase nearly 20-fold from the current offer price.
“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.
Using an investment of N5m as an example, Dangote said an investor holding the shares could see the value of the investment rise to more than N50m if the stock eventually reached his projected price.
“You see, you have become wealthy,” he added.
However, the projection is not a guarantee of future returns. Once the shares are listed, their market value will be influenced by demand and supply, the refinery’s financial performance, investor sentiment and wider economic conditions.
Dollar dividends among proposed benefits
Dangote also highlighted the possibility of shareholders receiving dividends in either naira or dollars.
He said the option could offer some protection against the impact of naira depreciation, particularly for Nigerians with financial commitments outside the country.
“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 cited the sharp movement in the naira-dollar exchange rate, recalling how the currency had moved from about N400 to the dollar to around N1,800.
Dangote said families with children studying abroad could particularly benefit from receiving dividends in dollars, as this could reduce their exposure to exchange-rate fluctuations.
“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 said.
What investors need to know about the IPO
The Dangote Refinery offer consists of 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, meaning investors can participate with N5,250.
The offer is scheduled to run from September 14 to October 13, 2026.
But applying for a specific number of shares does not mean an investor will necessarily receive the full amount requested. If demand exceeds the number of shares available, allocations may be scaled back.
Following the close of the offer, applications will be processed and investors will be notified of their allotments.
The shares are expected to be listed on the Nigerian Exchange Main Board after the allotment process, where their market value will subsequently be determined by trading activity.
Refinery expansion at the centre of the offer
The IPO is also expected to provide funding for the refinery’s expansion plans.
The facility currently has a refining capacity of about 650,000 to 700,000 barrels per day, with plans to increase this to 1.4 million barrels per day.
Dangote’s N10,000 projection therefore comes as investors prepare to take a direct stake in one of Africa’s largest refining projects.
For prospective shareholders, however, the key question after the listing will be whether the refinery can deliver the earnings, dividends and growth needed to support a sustained increase in its share price.
