Dangote shelves $1bn London listing of cement business

Nigerian billionaire Aliko Dangote has shelved plans to list Dangote Cement Plc on the London Stock Exchange, abandoning a proposed $1bn share offering over unfavourable market conditions and changing strategic priorities.

Dangote Industries Limited, which owns an 86.65 per cent stake in the cement manufacturer, confirmed the decision to discontinue the proposed listing for now.

The company’s board said the decision would not affect Dangote Cement’s operations, adding that its shares would continue trading on the Nigerian Exchange.

The proposed London listing was expected to involve the sale of about 10 per cent of the cement business, following Dangote’s announcement of the plan about six months ago.

According to a source familiar with the development, volatility in global equity markets following the United States midterm elections contributed to the decision.

The latest setback marks another postponement of Dangote’s efforts to secure an overseas listing for his cement business, an ambition he has pursued at different times over the past decade.

While the cement listing has been suspended, Dangote’s refinery business has attracted significant investor interest through its planned initial public offering.

The Dangote Petroleum Refinery reportedly attracted $4.1bn in bids against an initial fundraising target of $1.6bn.

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Of the total demand, Nigerian investors accounted for $1.9bn, while international institutional investors submitted bids worth $2.1bn.

The refinery offering also reportedly attracted nearly four million retail applications from investors across Africa.

South Africa’s Public Investment Corporation, which manages about $220bn in pension assets, was among the major institutional investors that submitted bids.

Nigerian pension fund administrators also participated in the offering, representing millions of contributors.

The contrasting fortunes of the two transactions highlight the different investor responses to Dangote’s cement and energy businesses amid changing global market conditions.