DANGOTE REFINERY IPO: WHAT NIGERIANS NEED TO DO BEFORE BUYING SHARES

Nigerians will have the opportunity to become shareholders in the Dangote Petroleum Refinery and Petrochemicals FZE when its Initial Public Offering opens on September 14, 2026. The offer is expected to be Africa’s largest-ever IPO, with 4.1 billion ordinary shares being offered at ₦525 each, potentially raising about ₦2.15tn. The Securities and Exchange Commission has approved the offer, while the subscription period is expected to run until October 13.

For prospective investors, the first step is to have an account with a licensed stockbroker. Shares listed on the Nigerian Exchange are purchased through authorised brokers rather than directly from the company. Investors who do not already have a brokerage account will therefore need to register with an SEC-licensed and NGX-approved stockbroking firm and complete the required Know Your Customer documentation before submitting an application.

Investors will also need the necessary Central Securities Clearing System arrangements through which their shares will be electronically held. Once the account and verification process are completed, funds can be transferred through the broker's approved payment channels. At the ₦525 offer price, the minimum subscription of 10 shares would cost ₦5,250 before any applicable charges. Prospective buyers should rely only on the official offer documents, licensed brokers and approved channels and should avoid individuals or unofficial platforms promising guaranteed allocations.

When the offer officially opens, investors can submit applications through their broker by indicating the number of shares they want to purchase and completing the required payment. Because the offer could attract substantial demand, applicants may not necessarily receive every share they request if the IPO is oversubscribed. After the allocation process, successful investors will have their allotted shares credited electronically, while applicable excess funds would be handled according to the offer's terms.

The investment, however, comes with market risks. The ₦525 offer price does not guarantee that the shares will rise after listing, as their future value will depend on the refinery's performance, profitability, investor demand and broader market conditions. The company is also pursuing a major expansion that could take refining capacity to 1.4 million barrels per day by 2029. Investors are therefore advised to study the final prospectus, understand the company's financial position and risks, and make investment decisions based on their own financial circumstances rather than market hype.