Dangote Refinery Investment Could Deliver Major Returns, Rewane Says
Economist Bismarck Rewane says a ₦5,000 investment in Dangote Refinery shares could potentially grow significantly over the next two to three years.
LAGOS, Nigeria: Economist and Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, has said Nigerians who invest in the Dangote Petroleum Refinery and Petrochemicals IPO could potentially see significant returns over the next two to three years.
Rewane made the statement while speaking on Channels Television’s Business Morning, where he encouraged Nigerians to consider investing in the refinery rather than seeking short-term financial gains.
According to him, an investment of about ₦5,000 could potentially grow to almost ₦300,000 within two to three years, based on projections contained in the refinery’s prospectus.
Rewane said the opportunity could also encourage wider participation in Nigeria’s capital market by allowing ordinary Nigerians to own shares in one of the country’s largest industrial projects.
The Dangote Refinery IPO is expected to attract millions of investors, with the company targeting a broad shareholder base.
The current offer comprises 4.1 billion ordinary shares priced at ₦525 per share, with a minimum subscription of 10 shares.
Rewane, however, stressed the importance of viewing the opportunity as a long-term investment rather than a means of making quick money.
The potential returns are projections and are not guaranteed. The future value of the shares will depend on the refinery’s financial performance, profitability, dividends, investor demand and movements in the Nigerian stock market.
The Dangote Refinery, located in the Lekki area of Lagos, has a refining capacity of 650,000 barrels per day and is expected to play a major role in Nigeria’s petroleum supply and export markets.
If the IPO attracts the millions of investors being targeted, it could become one of the most significant retail investment opportunities in Nigeria’s capital market in recent years.
For prospective investors, financial experts have advised careful consideration of the IPO prospectus and the risks associated with investing in equities before committing funds.
