Dangote Refinery IPO: A Ponzi Scheme?
First things first: no, it is not a Ponzi scheme Good Day Readers, it has been a minute (okay, a few years). I am back, and there is no better reason to dust off this blog than Africa's biggest IPO. Let me clear the air before anybody screenshots only the title. The Dangote Refinery IPO is not a Ponzi scheme. It is a real company with a real refinery somewhere at the outskirts of Lekki, reporting real profits and approved by the SEC. So why the title? This is because of how many Nigerians are approaching it. From my timeline, WhatsApp groups and even in the market, the mood is: "Put your money in now, by December 2027 you go don blow." That is the language of MMM, not the language of stocks and shares. No stock is, or should be treated as, a get-rich-quick scheme. Not Dangote, not MTN, not Tesla. If you walk into this IPO with a get rich quick mindset, you will get a Ponzi-style heartbreak, and it will not be Dangote's fault. Full disclosure: in 2021 I told you on t...