BY Asalu Adegboyega Yinka
Seplat was listed on the Nigerian Stock Exchange through an Initial Public Offering at #576 per share in April 2014. The stock gained significant momentum immediately after listing, rising to about #700 within its first three trading sessions.
However, the rally was short-lived. By December 2014, Seplat’s share price had fallen from #576 to approximately #252, as the global collapse in crude oil prices was compounded by local operational disruptions and a deterioration in the company’s financial performance.
The pressure intensified in 2015 and early 2016 as the global oil glut pushed Brent crude to a 12-year low, briefly falling below $28 per barrel. The sharp decline in oil prices had a significant impact on Seplat’s earnings, with revenue falling by more than 55%.
By January 2016, Seplat’s share price had declined to as low as #151.70. The company moved from being highly profitable at the time of its IPO to recording an operating loss of more than #45 billion.
Earnings per share turned negative, the balance sheet weakened significantly, and shareholders’ funds became negative. The deterioration in the company’s fundamentals also affected its ability to pay dividends, forcing investors to reprice the stock substantially lower.
Fast-forward to 2026, and the story looks dramatically different.
Seplat, which traded as low as #151.70 in January 2016, is now trading around #13,552.60 on the NGX Custom Street, representing a year-to-date return of approximately 133.30%, after opening the year at #5,610 in January 2026.
The Seplat experience offers an important lesson for investors considering the upcoming Dangote IPO.
A fundamentally strong company can experience significant price declines after an IPO because of changes in commodity prices, macroeconomic conditions, operational challenges, earnings, investor sentiment and valuation.
Therefore, before selling fundamentally sound stocks in your portfolio simply to raise money for the Dangote IPO, think twice.
An IPO is not guaranteed to rise after listing. The share price can move significantly upward or downward depending on market conditions, valuation, earnings and investor sentiment.
If you cannot comfortably leave your money invested in the stock market for at least one year, you should think carefully before subscribing to the Dangote IPO.
The Dangote IPO should be approached with a long-term investment mindset rather than the expectation of making a quick trading profit.
Seplat’s journey from #151.70 to #13,552.60 is a powerful reminder that short-term price movements do not always reflect the long-term value creation of a fundamentally sound company.
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