Dangote IPO — Minimum Investment & Lot Size
The official minimum investment will be announced in the Dangote IPO prospectus. Based on historical NGX IPO rules and the expected pricing range, here’s what retail investors should anticipate.
How NGX IPO Lot Sizes Work
On the Nigerian Exchange Group, IPOs are structured around minimum lot sizes — the smallest unit of shares a retail investor can apply for. Lot sizes are determined by the issuing company and its appointed investment banks, and are set to ensure broad retail participation.
For most NGX IPOs, the minimum lot is 100 shares. At an illustrative IPO price of ₦200–₦500 per share, this would translate to a minimum investment of approximately ₦20,000–₦50,000 (~$13–$32 USD) per lot.
Investors can apply for multiple lots, up to a maximum defined in the prospectus. Retail investors are typically allocated within a dedicated retail tranche, separate from the institutional tranche.
Retail Tranche
NGX rules require a portion of every IPO to be ring-fenced for retail (non-institutional) investors. For high-profile listings, this tranche can be 20–40% of total shares offered.
Application Process
During the subscription window, you apply for a specified number of lots. Your application is treated as a binding offer to purchase at the IPO price.
Allotment
If the IPO is oversubscribed, shares are allocated using a pro-rata or ballot system. Nigerian regulators typically favour retail allocation to maximise public participation.
Refund of Unallocated Funds
If you apply for 10 lots but only receive 3, the funds for the 7 unallocated lots are returned to your account, typically within 5–10 working days after allotment.
Illustrative Scenarios (Not Official Pricing)
| Share Price | 1 Lot (100 shares) | 10 Lots | 100 Lots |
|---|---|---|---|
| ₦200 | ₦20,000 (~$13) | ₦200,000 (~$127) | ₦2M (~$1,270) |
| ₦500 | ₦50,000 (~$32) | ₦500,000 (~$317) | ₦5M (~$3,165) |
| ₦1,000 | ₦100,000 (~$63) | ₦1M (~$633) | ₦10M (~$6,329) |
Exchange rate: $1 ≈ ₦1,580. Illustrative only. Actual IPO price determined at launch.
Get Alerted When the Prospectus is Published
The prospectus will contain the official minimum lot size and IPO price range.