FTSE Russell adds Dangote Cement, MTN Nigeria and eight others to Frontier Index Series

Ten Nigerian companies are set to gain a place in FTSE Russell’s Frontier Index Series, giving some of the country’s biggest listed businesses a wider audience among international investors.

The companies include MTN Nigeria, Dangote Cement, First HoldCo, Guaranty Trust Holding Company, Nestle Nigeria, Nigerian Breweries, Presco, Stanbic IBTC Holdings and Aradel Holdings. FTSE Russell said the stocks would enter the index’s Large Cap category from Sept. 21, although the admission remained tentative until Sept. 7.

The change comes alongside Nigeria’s return to frontier-market status. FTSE Russell announced the upgrade a week earlier, nearly three years after downgrading Nigeria to an unclassified market. The earlier decision followed a severe foreign-exchange squeeze that made it difficult for international investors to recover their money.

Being quoted in the index can provide the companies with more visibility than their primary listings on the Nigerian Exchange in Lagos. It may also support cross-border trading and give the companies broader access to equity financing through public offerings and rights issues.

Dangote Cement is preparing to make use of the increased international attention. The company said it will hold a capital-markets day in London this month ahead of a proposed secondary listing on the London Stock Exchange. The event will update investors and other stakeholders on its strategy, operations and priorities, while allowing them to meet senior management. If completed, the shares would trade under the exchange’s international commercial companies secondary-listing framework.

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The event will provide investors and other stakeholders with an update on the company’s strategy, operations, and business priorities, as well as an opportunity to engage with the company’s senior management.