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🇳🇬 Nigeria /Economy & Trade

FT: Aliko Dangote Plans London Listing for $13bn Cement Empire

From ThisDay · (1h ago) English Positive tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Africa's richest man, Aliko Dangote, plans a secondary listing of his $13 billion cement empire on the London Stock Exchange this year.
  • The move aims to sell about 10% of the company's shares to outside investors, with a target increase in output from 60 million to 100 million tonnes by 2030.
  • Dangote Cement is reviving a previously abandoned plan, attracted by recent changes to UK listing rules designed to boost the market.

Africa's wealthiest individual, Aliko Dangote, is reportedly preparing to list his colossal cement business on the London Stock Exchange, a move that could inject significant vitality into the UK's capital markets. The Financial Times reports that Dangote Cement, currently valued at nearly $13 billion on the Lagos Stock Exchange, is eyeing a secondary listing, with approximately 10% of its shares to be offered to external investors. This strategic decision signals a renewed confidence in London as a global financial hub, particularly following regulatory adjustments aimed at making the market more appealing for major international companies.

Dangote has indicated that the company is targeting a substantial increase in its production capacity, aiming to scale output from 60 million tonnes to 100 million tonnes by 2030. This ambitious expansion plan underscores the company's growth trajectory and its commitment to meeting rising demand across Africa and potentially beyond. The decision to pursue a dual listing in London, a plan that has been under consideration for years, reflects a careful evaluation of market conditions and strategic objectives. The company has reportedly engaged major financial institutions, including Citigroup, JPMorgan Chase, and Standard Bank, to advise on this significant undertaking.

We want to do a dual listing. We’ve been thinking about it for seven to 10 years

— Aliko DangoteDangote explaining the long-term consideration behind the dual listing plan.

From our perspective at ThisDay, this potential listing represents more than just a financial transaction; it is a powerful endorsement of the growth and potential of African enterprise on the global stage. While previous attempts to list in London were stymied by stringent requirements and competing priorities, such as the development of Nigeria's massive oil refinery, the current push appears more determined. The inclusion of prominent figures like Cherie Blair and Mick Davis on the company's board in 2018 signaled early preparations. Dangote Cement's impressive 70% share price increase this year further bolsters the case for its attractiveness to international investors, positioning it as a key player not only in Africa but potentially in the global building materials sector.

We ended up saying London is good as they have brought down the minimum listing requirements

— Aliko DangoteDangote commenting on the attractiveness of London's revised listing rules.
DistantNews Editorial

Originally published by ThisDay in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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