Does Premium Board on NGX Mean Dangote Refinery Shares Will Be Expensive for Investors?

Alright… relax first.
Because this is where many people get confused and miss opportunity.
You hear “Dangote Refinery… Premium Board… billions of dollars…”
And the next thing that comes to your mind is:
“Ah! This one go too cost… this one no be for people like us.”
No.
Calm down.

As your Financial Literacy Advocate..
Let me break this down with a Simple Story in a way that even Mama Ngozi that sells tomatoes in the Village will understand.

Imagine two shops:
One shop is inside Victoria Island (VI) – clean, organized, fine environment
And…
Another shop is inside Balogun Market – busy, crowded, local

Now let me ask you…
Because a shop is in VI…
Does that automatically make everything in that shop expensive?
No.
What it simply means is:
The environment is more structured
The standards are higher
The business looks more organized
That is exactly what Premium Board on NGX means.

Now… Back to your Questions..
You asked:
“If Dangote lists on Premium Board… will the share be too expensive?”

Let me tell you the truth:
Premium Board does NOT determine share price.
Let me say it again…
Where a company is listed does not determine how much one share will cost.

SO WHAT ACTUALLY DETERMINES SHARE PRICE?
Oya… calm down.
Let me go deeper and explain this in a way that even Grandma in the Village will nod her head and say: “Yes I understand this one ooh”
Imagine:
Mama Ngozi has a tomato business worth ₦1million
Now she wants to bring people in as partners.
And She has two options:

OPTION 1: She divides the business into:
1,000 parts
Each part = ₦1,000

OPTION 2:
She divides the business into:
10 parts
Each part = ₦100,000

You see?
Same business.
Same value.
Different price.

THIS IS THE SECRET
Share Price = Total Company Value ÷ Number of outstanding Shares

So:
If shares are MANY = price becomes LOW
If shares are FEW = price becomes HIGH

WHAT HAPPENS DURING IPO?
Now listen carefully… this is where professionals come in.
When a company wants to go public (IPO):
Valuation experts
Investment bankers
Financial analysts
They sit down and decide:
How much is this company worth?
How many shares should we create?
What price should we sell to the public?

As a Financial Literacy Advocate…
Let me tell you a STRATEGY MOST PEOPLE DON’T KNOW.
And Some companies do this deliberately:
They create MORE shares
So price becomes affordable
Why?
To attract more investors
To increase participation
To improve liquidity

While some companies:
Create FEWER shares
So price becomes high
Why?
To limit participation
To maintain exclusivity

BUT HERE’S THE BIG MISTAKE PEOPLE MAKE
You go to NGX…
You see:
One company = ₦10,000 per share
Another company = ₦300 per share
Then you say:
“Ah! This one of ₦10,000 must be bigger!”
Wrong.
Very wrong.

Let Me Tell You The Truth…
High share price does NOT mean big company.
In fact…
Some of the biggest companies:
May have shares below ₦1,000
Or even below ₦500

But.. Iking..
WHAT HAPPENS AFTER IPO?
Now this is where things change.
Once the company enters the secondary market:
You
Me
Mama Ngozi
Can now buy and sell.
And now…
Price is no longer controlled by the company.
It is controlled by:
Demand (people buying)
Supply (people selling)
Market sentiment
News & speculation

Please..
IPO price is structured
Market price is emotional

SO BACK TO YOUR QUESTION
Will Dangote shares be expensive?
Not because it is on Premium Board
Not because it is a big company
It will depend on:
How many shares they create
How they price it during IPO

Most people will miss opportunities not because they don’t have money…
But because they don’t understand what they are looking at.
Please…
Before IPO comes:
Don’t focus on “Is it expensive?”
Focus on “Do I understand this?”
Because…
Opportunity does not reward excitement…
It rewards understanding.

My name is Iking Ferry, a Nigerian Financial Literacy Advocate and Investment Strategist On a mission to build 10 million financially free Nigerians and Africans through the right knowledge on Fokona.com