Many people have never bought shares before and are asking the same question:
How exactly do I buy Dangote Refinery shares when the IPO opens?
Here is a beginner-friendly guide.
Step 1: Open a stockbroking account
You cannot buy shares directly from a bank account.
You need a stockbroker licensed by the Nigerian Exchange (NGX).
Some popular stockbroking firms include:
Meristem Stockbrokers
CardinalStone Securities
United Capital Securities
Stanbic IBTC Stockbrokers
Chapel Hill Denham Securities
CSL Stockbrokers
Coronation Securities
Vetiva Securities
Most now allow online account opening.
Step 2: Get a CSCS account
A Central Securities Clearing System (CSCS) account works like a bank account for shares.
When you buy shares, they are stored electronically in your CSCS account.
Many brokers help investors create one automatically during registration.
Step 3: Complete KYC verification
You will usually be asked to provide:
National Identification Number (NIN)
Bank Verification Number (BVN)
Passport photograph
Valid ID card
Utility bill or proof of address
Verification may take a few days.
Step 4: Fund your investment account
Transfer money to the account provided by your broker.
The amount depends on how many shares you want to buy.
Never send money to unofficial agents claiming to sell shares before the offer opens.
Step 5: Wait for the IPO to open
You can only apply when the official offer period begins.
Watch for announcements from:
Dangote Refinery
The Nigerian Exchange
Your stockbroker
The Securities and Exchange Commission (SEC)
The IPO prospectus will contain:
Share price
Minimum subscription
Offer dates
Company financial information
Risks and opportunities
Step 6: Submit your application
Once the offer opens:
Log into your broker’s platform
Select the IPO offer
Enter the number of shares you want
Review your application
Submit
Some brokers also accept physical application forms.
Step 7: Wait for share allocation
If the IPO is heavily oversubscribed, investors may receive fewer shares than requested.
After allocation:
Shares are credited to your CSCS account
Any excess funds may be refunded
Step 8: Monitor the stock after listing
Once listed on the Nigerian Exchange:
The share price may rise
The share price may fall
You can hold long-term
You can sell through your broker
Remember that investing always involves risk.
