Educational Disclaimer: This site is for education only. We do not give investment advice. Shares are volatile — prices go up and down and you may lose money. Always do your own research and speak to a professional adviser.
Understanding the Investment Risks
Investing in shares involves risk of capital loss. Here is what pages 134–155 of the prospectus warn in clear, non-legal language.
1. Share Prices Move Up and Down
When shares list on the Nigerian Exchange (NGX), their price is determined by daily buyer and seller demand. There is no guarantee that shares will trade above ₦525.00. Share prices can decrease during bear markets or economic downturns.
2. Crude Oil Supply & Feedstock Pricing
The refinery's profitability depends on securing adequate supplies of crude oil at competitive market prices. Interruptions in domestic crude supply, pipeline vandalism in the Niger Delta, or global price shocks can impact operational output.
3. Foreign Exchange (FX) Exposure
A substantial portion of DPRP FZE's historical borrowings and capital equipment contracts are denominated in foreign currency (US Dollars). Sharp swings in the Naira/USD exchange rate can create accounting gains or losses.
4. Expansion Project Milestones
The net proceeds of this IPO are designated to fund the refinery expansion to 2029. Major engineering projects can face supply chain bottlenecks, inflationary equipment costs, or delays in construction.
5. Illiquidity Between Application & Listing
From the time you submit your application in September/October 2026 until the shares are formally listed and credited to your CSCS account, your money cannot be withdrawn or traded. Only invest funds you do not urgently need.
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