Refinery Shares Could Rise to N10,000 — Dangote

President of Dangote Industries Limited, Aliko Dangote, has said shares of the Dangote Petroleum Refinery, currently offered at N525 each, could rise to as much as N10,000 in the future.

Dangote also said small-scale investors would be given priority in the allocation of shares under the refinery’s planned Initial Public Offering (IPO).

He made the remarks during an interview conducted in Hausa while discussing the IPO and its potential benefits to investors. The interview was published on Thursday and attracted wider attention on Saturday.

According to Dangote, retail investors seeking to purchase smaller amounts of shares, including investments of N50,000 and N100,000, would receive priority over large institutional investors during the allocation process.

He explained that institutional investors requesting large quantities would not necessarily receive their entire applications, while smaller investors would be prioritised before the remaining shares were distributed.

Dangote also discussed the potential long-term value of the refinery’s shares, saying the current offer price of N525 could increase substantially if the company performs well and market conditions support higher valuations.

Using a hypothetical investment example, he said an investor who purchased shares worth N5 million could see the value of the investment rise to more than N50 million if the share price eventually reached N10,000.

He further said shareholders would have the option of receiving dividends in either naira or US dollars.

According to him, the dollar dividend option could help investors protect their earnings against the impact of naira depreciation, particularly those with financial commitments outside Nigeria.

He cited parents whose children are studying in the United Kingdom as an example, saying receiving dividends in dollars could help them meet foreign-currency expenses without being as exposed to exchange-rate fluctuations.

Dangote recalled the sharp depreciation of the naira against the dollar over the years, noting that the exchange rate had moved from around N400 to the dollar to about N1,800 at one point.

He said such exchange-rate pressures had created difficulties for families paying overseas school fees and other expenses, and argued that dollar-denominated dividends could provide some protection against similar challenges.

The Dangote Refinery IPO consists of 4.1 billion ordinary shares priced at N525 each. If fully subscribed, the offer is expected to raise about N2.15 trillion.

The minimum subscription is 10 shares, which costs N5,250, 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 allotments. Investors who apply for a specific number of shares are not guaranteed to receive the entire amount requested, particularly if the offer is oversubscribed.

The refinery’s shares are expected to be listed on the Nigerian Exchange Main Board after the allotment process. Their market value will thereafter be determined by demand and supply.

Dangote’s projection that the shares could eventually reach N10,000 does not guarantee that they will attain that price or that investors will make a profit.

The share price could rise or fall after listing depending on the refinery’s financial performance, refining margins, investor confidence, demand for the shares and broader economic conditions.

Funds raised through the IPO are expected to support the refinery’s expansion plans, with the company targeting an increase in refining capacity from about 650,000–700,000 barrels per day to 1.4 million barrels per day.