Nigeria Approves US$14bn Dangote Cement Listing

Nigeria Approves US$14bn Dangote Cement Listing
Published: 10 September 2010

Nigeria’s stock exchange approved a NGN22.09trn (US$14bn) listing of Dangote Cement, the nation’s biggest producer of the building material, which will increase the bourse’s market capitalisation by 37 percent.

The company will be created out of the merger of Dangote Cement and Benue Cement Co., the Lagos-based bourse said in an e-mailed statement today. A total of 15.5 billion shares for the will be listed at 135 naira each, the exchange said, without giving further details. Afrinvest (West Africa) Ltd. will introduce the issue, according to the statement.

The Nigerian bourse, sub-Saharan Africa’s second-biggest after South Africa’s, currently has a market value of US$37.2bn. Dangote is owned by Nigerian billionaire Aliko Dangote, whose Dangote Group has interests Dangote Sugar Refinery Plc, National Salt Co. Nigeria Plc, logistics and real estate.

“It is a very important development because it will boost confidence in the market,” Bismarck Rewane, chief executive officer of Lagos-based Financial Derivatives Co., said by phone from London today. “The listing is another opportunity for investors to participate in a company that has become the leading producer of cement in Africa.”