NGX's Troubling Pattern of Initial Gains, Long-Term Losses: Lessons from Six Companies

The Nigerian Exchange (NGX) has seen several companies list on its platform with strong opening-day demand, only to see their shares trade below their initial public offering (IPO) prices for years. The latest example is Dangote Petroleum Refinery and Petrochemicals' (DPRP) upcoming IPO, which has attracted significant interest from investors.

According to a review of the NGX's history, at least six companies that debuted on the exchange with considerable enthusiasm have traded below their offer prices for years. These include Airtel Africa Plc, Honeywell Flour Mills Plc, Omatek Ventures Plc, Japaul Gold and Ventures Plc, Daar Communications Plc, and Seplat Petroleum Development Company Plc.

Airtel Africa listed on the NGX in 2019 at N363 per share through a cross-border secondary listing. However, its shares fell below the offer price within its first week of trading, causing investor losses of N148.4 billion in that week alone. Despite this, Airtel Africa has since staged one of the strongest recoveries on the exchange, closing at N6,300 as of August 11, 2026.

Seplat Petroleum Development Company Plc, now known as Seplat Energy Plc, dual-listed on the NGX and the London Stock Exchange in 2014. The oil price collapse between 2014 and 2016 dragged its stock to an all-time low of N151.70 in January 2016, more than 70% below its listing price. However, it has since become one of the exchange's standout performers, hitting an all-time high of N6,700 in February 2026.

While some companies have eventually rewarded patient shareholders who held on through years of losses, others remain far below their offer prices decades after listing. Analysts note that the pattern is uneven and that retail investors should weigh this history alongside the excitement around Africa's largest share sale.