Dangote Cement has abandoned its planned secondary listing on the London Stock Exchange for now, citing market conditions and the company’s broader strategic priorities.
The decision was approved at a board meeting on Tuesday, November 10, and disclosed in a filing to the Nigerian Exchange (NGX) signed by company secretary Edward Imoedemhe. The filing said Dangote Cement and its selling shareholder, Dangote Industries Limited, would not proceed “at this time”.
“The Company’s ordinary shares remain listed on the NGX, and this decision does not in any way affect the Company’s operations or business plans,” the company said.
Dangote Industries owns about 87 per cent of Dangote Cement.
The company revealed in May that it was holding early discussions about a London float, which would have given overseas investors access to the business and provided additional capital. By July, it had told shareholders that the United Kingdom’s faster listing process was preferable to Dubai’s.
A capital markets day for investors had been scheduled in London for September 21. Reports in October said investment banks were working towards a fundraise of about US$1 billion.
The reversal follows a difficult period for global equities after the United States midterm elections. Wall Street fell as a victory for the Democrats fuelled fresh concerns over the sustainability of the artificial intelligence boom, while the FTSE 100 finished the week lower.
A person familiar with the decision told Reuters that Dangote Cement could reconsider the listing when financial markets become more stable.
“These are pretty awful conditions for anyone to attempt an IPO,” Samuel Kerr, an analyst at deal-intelligence firm Mergermarket, told Reuters.
He pointed to the recent increase in equity-market volatility, adding that waiting for calmer conditions could produce a stronger outcome and potentially support a higher valuation.
The decision is another setback for London’s market, which has struggled to attract new listings. Only weeks earlier, Dangote Cement chairman Emmanuel Ikazoboh had described the proposed flotation as a “landmark moment”.
“London is a natural bridge between African opportunity and global investors,” he told The Sunday Times. The Telegraph reported the change of plan.
Dangote Cement has a market value of 24.79 trillion naira, equivalent to about US$18.4 billion. Its shares ended trading in Lagos on Monday at 1,469.90 naira, having risen by about 141 per cent this year.
The company reported a 31 per cent increase in nine-month profit, with revenue reaching 3.8 trillion naira. A previous attempt to list in London failed in 2018.
For Aliko Dangote, Africa’s richest man, the decision comes only weeks after the completion of the US$1.6 billion initial public offering of his oil refinery in Lagos. That deal was the biggest share sale in Africa, and was met with both applause and caution at the time.
Dangote is due to attend the Invest Ghana Summit in Accra alongside President John Mahama on November 16 and 17.
