Stockbrokers Offer Safer Route to Dangote IPO — Ex-CIS Boss

Investors seeking to participate in the planned initial public offering of Dangote Petroleum Refinery have been advised to use licensed stockbroking firms to reduce the risk of falling victim to fraudulent offers.

A former President of the Chartered Institute of Stockbrokers, Olatunde Amolegbe, said investors should deal with registered market operators when seeking to acquire shares in the landmark offering.

His advice comes as interest continues to build around the Dangote Refinery IPO, which is expected to attract substantial participation from retail and institutional investors.

The Securities and Exchange Commission has previously warned members of the public about unauthorised solicitations and misleading promotions relating to the proposed Dangote Refinery securities offering.

Amolegbe said the safest approach for prospective investors was to engage professionals who are licensed to operate in Nigeria’s capital market.

He explained that registered stockbrokers are subject to regulatory requirements and provide investors with a formal channel through which transactions can be conducted and documented.

The former CIS boss also advised investors to verify the identity and regulatory status of any person or organisation offering access to the Dangote IPO before transferring funds or providing personal information.

The advice comes amid growing public interest in the refinery’s planned share offering, which is expected to provide Nigerians and other investors with an opportunity to acquire an ownership stake in one of Africa’s largest industrial projects.

The proposed IPO involves the offer of billions of ordinary shares in Dangote Petroleum Refinery, with the company seeking to raise substantial capital for expansion and other corporate purposes.

The offering has generated significant attention because of the size of the refinery and its importance to Nigeria’s petroleum industry.

However, the growing interest has also created opportunities for fraudsters to impersonate investment companies, brokers and other market intermediaries.

Investors have therefore been urged to rely on official information and verified capital-market operators rather than unsolicited messages, social media advertisements or unofficial payment channels.

Amolegbe’s warning reinforces the need for investors to understand the terms of an IPO before committing funds and to ensure that payments are made only through authorised channels.

As preparations for the Dangote Refinery IPO continue, prospective investors are expected to scrutinise available information carefully and confirm that the firms facilitating their subscriptions are properly licensed.

The former CIS president said using regulated stockbrokers would provide investors with a more secure and accountable route into the offering while helping to protect them from fraudulent schemes.