Dangote Projects Refinery Shares Could Soar to N10,000, Prioritizes Small Investors

Aliko Dangote, President of Dangote Industries, has made headlines by predicting that shares of the Dangote Petroleum Refinery, currently priced at N525, could surge to an impressive N10,000 in the future.

In a recent interview, Dangote reassured small-scale investors eager to participate in the refinery's Initial Public Offering (IPO) that they would receive priority in the allocation of shares. He emphasized that retail investors looking to purchase shares worth N50,000 or N100,000 would be prioritized over large institutional investors.

“When you do something like this—what is called an IPO—small-scale investors will be given priority first,” Dangote stated. He noted that larger institutional requests for substantial share allocations would not necessarily be met in full.

Dangote expressed confidence in the potential rise of the share price, suggesting that an investment of N5 million could eventually be worth over N50 million if the shares reach his projected target of N10,000. 

He also highlighted the flexibility for shareholders to receive dividends in either naira or dollars, a significant advantage for Nigerians facing currency depreciation. This option allows investors, particularly those with financial obligations abroad, to mitigate the risks posed by fluctuating exchange rates.

“The benefit of buying shares is that it won’t prevent you from carrying out your regular work,” he explained. “If you have a child studying abroad, you can receive dividends in dollars, shielding you from exchange rate shocks.”

The IPO will offer 4.1 billion ordinary shares priced at N525 each, with a minimum subscription of 10 shares, amounting to N5,250. The offering runs from September 14 to October 13, 2026, with full subscriptions expected to generate approximately N2.15 trillion.

Following the closing of the offer, applications will be processed, and investors will be notified of their allotments. However, applying for a specific number of shares does not guarantee that full requests will be met, especially if demand exceeds supply.

While Dangote's optimistic projections have generated excitement, he cautioned that the future market price of the shares will depend on various factors, including the company's performance and broader economic conditions.

The IPO proceeds are intended to support the refinery's expansion, increasing its capacity from about 650,000-700,000 barrels per day to 1.4 million barrels per day, enhancing its role in the Nigerian economy.