President of Dangote Industries Limited, Aliko Dangote, has expressed optimism that a N100,000 investment in shares of Dangote Petroleum Refinery and Petrochemicals could potentially grow into N1 million within one or two years.
Dangote made the projection during an interview with Arise News on Tuesday while discussing the refinery’s ongoing Initial Public Offering on the Nigerian Exchange.
The refinery is offering its shares at N525 each, with Dangote projecting that the price could rise substantially in the future, potentially reaching between N5,000 and N10,000, depending on market performance.
According to the billionaire businessman, such an increase could significantly boost the value of investments made by small shareholders.
He explained that an investor who puts about N100,000 into the shares and holds the investment for one or two years could potentially become a millionaire if the share price reaches the levels he envisaged.
Dangote, however, linked the potential returns to the future performance of the shares, noting that market conditions would determine how far the price could rise.
He encouraged investors to consider holding their shares rather than rushing to sell, saying shareholders could also benefit from dividends generated by the company.
The businessman further highlighted the potential advantage of dollar-denominated dividends, particularly for Nigerians concerned about the effect of naira depreciation on their investments.
According to him, receiving dividends in dollars could provide investors with some protection against fluctuations in the value of the local currency.
The comments come amid strong investor interest in the Dangote refinery IPO, which offers 4.1 billion ordinary shares at N525 per share. The offer is expected to raise approximately N2.15 trillion.
Investors flooded the Nigerian Exchange shortly after the offer opened, signalling significant interest in taking ownership stakes in the country’s largest oil refinery.
Dangote urged prospective shareholders to take a long-term view of the investment, arguing that sustained ownership could provide opportunities for both capital appreciation and dividend income.
However, the eventual value of the investment will depend on the refinery’s financial performance, dividend policy and the market price of its shares after listing.
