You have subscribed to the Dangote Refinery IPO.

Congratulations. But clicking the subscribe button is only the beginning.

With the offer now open and thousands of Nigerians looking to become shareholders in one of Africa’s biggest industrial companies, there are several things investors should do after submitting an application.

Here are seven of them.

1. Keep your subscription confirmation

Don’t delete your receipt, transaction reference, application confirmation or payment evidence.

Take screenshots and keep copies of emails or messages confirming your application.

If there is ever a problem with your application or payment, those records could become important.

The SEC has also warned investors to use only approved subscription channels and to verify platforms before sending money. 

2. Keep checking the platform you used

Whether you applied through an approved broker, bank or electronic application channel, monitor your account for updates.

Pay attention to messages about your application, allotment and any refund.

Don’t depend entirely on social media posts for IPO information.

The SEC specifically warns investors against unsolicited messages or platforms promising guaranteed allocations. 

3. Don’t assume you will receive every share you requested

This is one of the biggest things new investors need to understand.

Submitting an application does not automatically mean you will receive the exact number of shares requested.

After the offer closes, applications will be processed and shares allocated according to the approved terms of the offer. 

So if you requested 1,000 shares, don’t automatically assume your account will end up with 1,000.

4. Don’t panic if you receive fewer shares

If demand exceeds the available shares, your final allocation could be lower than your application.

That isn’t necessarily a problem.

The important thing is to wait for the official allotment result rather than relying on rumours circulating online.

And if part of your application is not allotted, watch your account for the applicable refund process.

5. Don’t spend your refund immediately

If you receive money back because you were not allotted the full number of shares you requested, you will have a decision to make.

You could keep the money.

You could invest elsewhere.

Or, once the refinery shares are actually listed and trading begins, you could decide whether buying additional shares on the NGX makes sense for you.

But don’t assume the post-listing price will be ₦525.

The IPO price and the eventual market price are two different things.

6. Don’t rush to sell on the first day

Once the shares eventually become available for trading, there could be excitement around the stock.

Some investors may want to sell immediately if the price rises.

Others may panic if it falls below the IPO price.

Neither reaction should be automatic.

A listed share can move in either direction. The official IPO information itself warns that the value of the shares can rise or fall and that investors can lose some or all of their investment. 

7. Start following the company, not the hype

This may be the most important step.

After buying a share, stop looking at the IPO only as a trending investment and start looking at the business behind it.

Watch:

• Revenue
• Profit
• Debt
• Refinery production
• Expansion plans
• Cash flow
• Dividends
• Future corporate announcements

Dangote Refinery currently operates at a reported 700,000 barrels per day, while the company plans to expand capacity substantially. Reuters reported that the IPO is seeking about ₦2.15 trillion through 4.1 billion shares priced at ₦525 each. 

And remember: dividends are not guaranteed. The official IPO site says dividends depend on factors including company performance, cash requirements and decisions of the board. 

The IPO is only the beginning

Buying into an IPO can feel like the exciting part, but the real work starts afterward.

Your goal shouldn’t simply be to buy Dangote Refinery shares.

It should be to understand what you own, how the company performs and whether the investment continues to make sense for you over time.

Before making any investment decision, read the approved prospectus and consider getting advice from a registered investment professional.

Share this with someone who has subscribed to the Dangote Refinery IPO.