President of Dangote Industries Limited, Aliko Dangote, has said investors who buy and hold shares in Dangote Petroleum Refinery and Petrochemicals could potentially become millionaires within one or two years if the company’s share price rises significantly.
Dangote made the statement in an interview with Arise TV aired on Tuesday while discussing the refinery’s initial public offering on the Nigerian Exchange.
The refinery’s shares are currently being offered at N525 each, with Dangote expressing optimism that the share price could eventually rise to between N5,000 and N10,000, depending on market conditions.
According to Dangote, the potential increase in the share price could create significant returns for investors who participate in the offering and hold their shares over time.
When asked whether he expected the N525 offer price to rise to around N10,000, Dangote responded, “I pray so, yes.”
At N525 per share, an investment of N100,000 would purchase approximately 190 shares, excluding transaction costs.
If the share price were to reach N5,000, those shares would be worth about N950,000. At N10,000 per share, the same holding would be worth approximately N1.9 million.
However, such returns are not guaranteed, as share prices fluctuate according to market conditions, company performance, investor demand and other factors.
Dangote’s comments come as the refinery moves to raise capital through its public offering, giving Nigerian investors an opportunity to acquire an ownership stake in the multibillion-dollar petroleum project.
The Dangote Petroleum Refinery, located in Lagos, is designed to process crude oil into refined petroleum products for domestic and international markets.
The company’s planned share offering has attracted significant attention from investors as the refinery expands its operations and seeks to strengthen its position in the global energy market.
Dangote’s projection of a potential share price of N5,000 to N10,000 represents a substantial increase from the current N525 offer price. However, the actual performance of the shares will ultimately depend on developments in the company and the wider capital market.
Investors considering the offer would therefore need to assess the potential returns alongside the risks associated with investing in equities, including the possibility of losing part or all of the invested capital.
