(4 minutes read)
· Aliko Dangote, Africa’s richest person, has decided not to list his cement shares on the London Stock Exchange now
· Instead, it will focus on increasing exports and boosting the Nigerian company’s foreign-exchange reserves
Aliko Dangote, Africa’s richest person, has decided not to list his cement shares on the London Stock Exchange now. Instead, it will focus on increasing exports and boosting the Nigerian company’s foreign-exchange reserves. That will also help Nigeria to shore up its depleting foreign exchange reserves.
The continent’s biggest cement producer, Dangote Cement, company sources say, is not expected to attempt a UK initial public offering until 2023. The company is more focused on cement exports to increase the foreign exchange revenue. The overriding reason could be the timing since the listing could coincide with heavy shave off in the stock market.
Aliko Dangote’s net worth is more than US$14 billion. He has earlier expressed his plan for Dangote Cement to have a secondary London listing to diversify its ownership to gain access to cheaper funds from international markets. Yet, for one reason or the other, it shied away from that.
Dangote Cement raised resources from the domestic debt markets to the extent of 100 billion naira (R4.32 billion) through commercial papers in May and April this year taking advantage of the favorable domestic market. The company is looking at exporting clinker to 15 countries in Central and West Africa in a bid to boost revenue and resolve the scarcity of foreign exchange in Nigeria.
