Financial Derivatives Company (FDC) CEO Bismarck Rewane has said the initial public offering (IPO) of the Dangote refinery will help build an “investment culture” among Nigerians, offering a more reliable source of returns than betting or gambling.
Speaking on Channels Television, Rewane said the goal of attracting 10 million investors to the IPO would give the refinery one of the largest shareholder bases in the world, which he described as a major milestone for the company.
“If you can get 10 million shareholders to participate in the IPO, the Dangote refinery will have the largest number of shareholders in the world. But that doesn’t mean the value of the investment,” he said.
Rewane added that encouraging Nigerians to invest in the refinery would provide an alternative to gambling and betting, pointing out that many people currently spend a significant portion of their income on betting for sports.
He argued that investing is more predictable than gambling because investors place money into an asset with identifiable parameters and expected value.
“It offers a surer bet of getting revenues and dividends than the 0.0001 probability that you will get a football match or a wrestling battle,” he said.
He explained the difference between gambling and investing by noting that gambling relies on chance, while investment is based on known factors.
Rewane also said the projected 10 million shareholders could help democratize Nigeria’s market and economic process, by giving more citizens the opportunity to own shares.
He compared the number of prospective investors with the number of Nigerians who voted in the 2023 general election, saying that more people would benefit financially through long-term investment rather than short-term selling of their permanent voter cards (PVCs).
“You are better off with your N5,000 share than selling your PVC for N10,000 or N15,000 and consuming it,” he said.
He further suggested that, if successful, the investment could grow in value within two to three years, potentially reaching around N300,000 (according to his projection).
Rewane stated that the IPO would also diversify Dangote refinery’s shareholding and allow more Nigerians to participate in what he described as Africa’s largest IPO.
He noted that, among the 10 largest refineries globally, none are located in Africa, arguing that Dangote’s refinery could become a hub for refining and marketing products across central and West Africa.
Rewane described the offer as a “compelling investment opportunity” that could generate returns for investors while increasing tax revenue for the government.
He added that the Dangote Petroleum Refinery and Petrochemicals officially signed IPO documents with investment banks and financial advisers on September 7, ahead of a proposed opening on September 14.
The offer is expected to close on October 13. It has a minimum subscription of 10 shares, meaning investors can participate with N5,250 at an offer price of N525 per share.
