Refinery Shares Could Hit N10,000 Per Share—Dangote

President of Dangote Industries Limited, Aliko Dangote, has said shares of the Dangote Petroleum Refinery offered at N525 in the upcoming Initial Public Offering could eventually rise to N10,000, per share.

Dangote spoke in Hausa during an interview with Abis Fulani, translated by Google Gemini, while discussing the planned IPO and its potential benefits to investors.

He assured retail investors seeking to participate that they would be prioritised in the allocation of shares over large institutional investors.

“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.

He said the remaining shares would subsequently be distributed among other investors.

On the potential value of the shares, Dangote projected a significant appreciation 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.

He stated that “therefore, if you hold it, having bought it, and it rises to N10,000, where you previously invested N5 million, it will now be worth over N50 million. You see, you have become wealthy.”

Dangote also said shareholders could choose to receive dividends in either naira or dollars, saying the option could help investors cope with currency depreciation.

He recalled the sharp depreciation of the naira, noting that the exchange rate had moved from about N00 to the dollar to N1,800.

The Dangote Refinery IPO comprises 4.1 billion ordinary shares priced at N525 each. A full subscription is expected to raise about N2.15 trillion, with a minimum subscription of 10 shares costing N5,250.

Proceeds from the IPO are expected to support the refinery’s expansion, with plans to increase refining capacity from about 650,000 to 700,000 barrels per day to 1.4 million barrels per day.