Shares of Nigerian Exchange Group Plc (NGX Group) rose 21.6% in five trading sessions, driven by the opening of the N2.15 trillion Dangote Petroleum Refinery and Petrochemicals initial public offering (IPO) on the Nigerian Exchange. NGX Group's share price increased from N148 on September 11 to N179.90 on September 18, representing a gain of N31.90 per share. The stock recorded gains in each of the first four sessions of the week.
The surge in NGX Group shares coincided with a sharp increase in trading activity in the stock. On Wednesday, NGX Group recorded 23.41 million shares, its highest daily volume during the five-session period. The company's market capitalization stood at approximately N471.13 billion, based on 2.619 billion shares outstanding. The Dangote Refinery IPO, which opened on September 14, is one of the largest equity offers in Nigeria's capital-market history.
The Dangote Refinery IPO comprises 4.1 billion ordinary shares at N525 each, with a minimum subscription of 10 shares costing N5,250. The offer is scheduled to close on October 13, 2026, and is targeting approximately N2.15 trillion in fresh capital. The transaction has generated significant retail-investor activity, with NGX Group saying investors flooded the Exchange at the opening of the offer.
However, the increased activity has also exposed pressure points in the digital distribution of capital-market products. Several Nigerian digital investment platforms experienced outages as investors rushed to subscribe to the Dangote offer. In response, the Securities and Exchange Commission (SEC) issued an investor alert on September 14, warning prospective subscribers against fraudulent platforms, unauthorised agents, and individuals seeking to receive applications or funds for the Dangote IPO.
The SEC directed investors to make applications and payments only through officially designated and approved receiving agents, subscription channels, and platforms. The regulator also advised investors to verify the registration status of capital-market operators and investment platforms before transferring funds or providing personal and financial information.
The Dangote offer has attracted widespread attention due to its relatively low minimum subscription and the prospect of bringing a large number of new retail investors into the Nigerian equities market. At the N525 offer price, the 4.1 billion shares carry an implied value of approximately N2.15 trillion. NGX Group has said the transaction could broaden participation in the market by giving retail and institutional investors access to ownership of the refinery.
The scale of the transaction is significant for the Nigerian Exchange, as Dangote Refinery is the first petroleum refinery to be offered to investors through the Nigerian stock market. The offer is expected to have an implied market capitalization of about N65.22 trillion at the N525 offer price. The transaction's impact on retail-investor activity and capital-market liquidity will be closely watched as the offer remains open to investors until October 13.
Key points
- NGX Group shares surge 21.6% in 5 sessions as Dangote Refinery IPO opens
- SEC warns investors against fraudulent platforms and unauthorised agents targeting subscribers
- Dangote Refinery IPO targets approximately N2.15 trillion in fresh capital
