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Dangote reinforces plans to list in London
Posted on Tuesday, 09 October 2018 12:44
Dangote Cement is working on floating on London’s bourse in 2019 after the Nigerian elections, chief executive and chairman of the fully-integrated manufacturer said at the latest Financial Times African Summit.
While he did not give much away, and declined to give a specific timeframe, when asked who could pitch for a role on the listing Aliko Dangote noted “the usual ones – Bank of America Merrill Lynch and Standard Chartered Bank”, though it has not yet launched a bake-off.
Earlier this year, Bloomberg reported the company revived plans to become admitted to the international bourse via a share sale potentially worth USD 1.00 billion amid a stock rally due to a rebound in the country’s economy following a downturn caused by a slump in oil prices in 2014.
At the time, people told the news provider a UK listing could happen about five months after bankers are appointed to the process, which would help diversify Dangote’s investor base.
The cement manufacturer could be tapping investors via an international bourse as, according to Zephyr, the M&A database published by Bureau van Dijk, the largest initial public offering by a Nigerian company was Starcomms’ USD 790.97 million-domestic debut in 2008.
Seplat Petroleum Development currently represents the country’s biggest dual-listing after the oil and gas explorer raised USD 549.10 million at home and on the London Stock Exchange in 2014.
Dangote Cement is currently one of the most capitalised stocks on the Nigerian Stock Exchange, with its NGN 3,408 billion (USD 9.37 billion) accounting for about 25.0 per cent of the bourse’s NGN 13,000 billion-value.
The business, which is ultimately controlled by Aliko Dangote, operates plants for the preparation, manufacture, and distribution of cement and related products.
Group revenue was up 16.9 per cent at NGN 482.44 million in the six months to 30th June (H1 2017: NGN 412.68 million), while earnings before interest, tax, depreciation and amortisation rose 20.8 per cent to NGN 246.01 million over the same timeframe (H1 2017: NGN 203.68 million).
© Zephus Ltd