Lagos, Nigeria — Dangote Cement Plc, Africa’s largest building materials producer, is set to expand its global reach by listing on the London Stock Exchange, a strategic move that signals the company’s commitment to international capital markets.
The secondary listing, which will complement the company’s primary listing on the Nigerian Exchange, is expected to occur by 2026. This decision comes after careful consideration of various international venues, with London ultimately being selected over Dubai.
The rationale behind this choice is rooted in the UK’s favorable capital market regulations and the promise of more efficient execution speed and liquidity, which are crucial for a company of Dangote Cement’s scale. Mariya Dangote, daughter of Africa’s richest man, Aliko Dangote, and a board member of Dangote Cement, highlighted the speed at which shares can be sold on the UK exchange as a key factor in the decision. This preference underscores the conglomerate’s focus on securing swift access to global institutional liquidity while maintaining its strong foundation in Lagos, Nigeria.
The proposed secondary listing could involve the sale of approximately 10% of the firm’s equity to foreign institutional investors. This move is part of a broader capital markets plan for Dangote Industries, which includes preparing its $20 billion petroleum refinery and fertilizer divisions for future public market debuts. Dangote Cement currently operates across 11 African nations with an installed production capacity of 55 million tonnes annually.
The company has set a goal of reaching over 80 million tonnes by 2030, reflecting its ambition to be a key player in the global cement industry. This London Stock Exchange listing is anticipated to provide Dangote Cement with access to a wider investor base and increased liquidity, potentially supporting its expansion plans across Africa and beyond. It is also expected to enhance investor confidence in the company and the broader African market.
The decision to list on the London Stock Exchange is a significant step for Dangote Cement, aligning with the continent’s growing economic integration with the global market and highlighting the attractiveness of London’s capital markets for African businesses seeking to expand their international presence.
*Additional reporting by ImNews | Sources consulted: 5*
—
This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Awogbemila Temitope
