₦525 To ₦10,000 Dangote Makes Bold Projection On Future Value Of Refinery Shares

President of Dangote Industries Limited, Aliko Dangote, has disclosed that shares of the Dangote Petroleum Refinery being offered at ₦525 under its planned Initial Public Offering could potentially rise to as much as ₦10,000 in the future.

According to Bush Radio Academy, Dangote also explained that the IPO is designed to give small-scale retail investors priority during the share-allocation process before large institutional investors.

Speaking in Hausa during a recent interview, Dangote said investors seeking relatively small allocations, including those willing to invest ₦50,000 or ₦100,000, would be considered ahead of institutional investors seeking significantly larger allocations.

He explained that while institutional investors may request substantial quantities of shares, they would not necessarily receive their entire requests because smaller investors would first be considered for allocation.

Dangote said that after the allocation to retail investors, the remaining shares would then be distributed among other categories of investors.

The billionaire businessman also highlighted what he described as the potential long-term value of the refinery shares. He noted that although the current offer price is ₦525, the value could increase substantially over time.

Dangote projected that the shares could eventually reach ₦10,000, using the example of an investor who puts ₦5 million into the offer. He explained that if the shares eventually reached his projected price, the investment could be worth more than ₦50 million.

However, the ₦10,000 figure represents Dangote’s projection and is not a guarantee that the shares will reach that price. Their future market value will depend on several factors, including demand and supply, the refinery’s performance, investor sentiment, refining margins and broader economic conditions.

Dangote also disclosed that shareholders could have the option of receiving dividends in either naira or US dollars. He said the dollar-denominated option could provide some protection against the impact of naira depreciation, particularly for investors with financial obligations outside Nigeria.

He cited parents with children studying in the United Kingdom as an example, noting that receiving dividends in dollars could help them manage the effect of fluctuations in the naira-to-dollar exchange rate.

Dangote recalled the significant depreciation of the naira against the dollar in recent years, noting that the exchange rate had moved from around ₦400 to the dollar to levels as high as ₦1,800.

He explained that such currency movements had created difficulties for families paying overseas education expenses and said the proposed dividend structure could help reduce exposure to exchange-rate shocks.

The Dangote Petroleum Refinery IPO comprises 4.1 billion ordinary shares priced at ₦525 each. If fully subscribed, the offer is expected to raise approximately ₦2.15 trillion.

The minimum subscription is 10 shares, which would cost ₦5,250, while the offer is scheduled to run from September 14 to October 13, 2026.

Following the close of the offer, applications will be processed and investors will be notified of their respective allotments in line with the terms announced by the Dangote Group.