Dangote Cement, owned by Nigerian billionaire Aliko Dangote, has shelved plans for a secondary listing on the London Stock Exchange. The decision was made citing prevailing market conditions. Dangote Cement, valued at ₦24.79 trillion (£13.7 billion), will retain its primary listing on the Nigerian Exchange (NGX). This move represents a setback for the London Stock Exchange as it struggles to attract major companies seeking international capital.
The company had disclosed in May that it was in preliminary discussions over a London listing as part of efforts to attract more international investors and access deeper pools of capital. Dangote Cement's chairman, Emmanuel Ikazoboh, had described the proposed London listing as a “landmark moment”. However, the company announced that it and its selling shareholder, Dangote Industries Limited, will not proceed with the proposed secondary listing and offering on the London Stock Exchange at this time.
The sudden about-turn is another blow to the City of London, which has suffered a dearth of new listings in recent years. Few companies have listed in London following a string of global shocks since the pandemic. The decision comes weeks after Dangote launched Africa’s biggest-ever share sale in September with the listing of his oil refinery on Nigeria’s main stock exchange.
Mr. Ikazoboh had spoken positively about London during roadshows with investors in recent weeks. “London is a natural bridge between African opportunity and global investors,” he told The Sunday Times. However, Dangote’s decision follows a sharp decline in the FTSE 100 last week as it was swept up by concerns about a slowdown in global AI spending after the US midterm elections.
The London Stock Exchange has struggled to attract major listings recently. Sunil Bharti, an Indian billionaire, tested the market in October with the London Stock Exchange’s biggest listing in five years. However, shares of Airtel Money, an African payments business that is a subsidiary of FTSE 100 mobile operator Airtel Africa, fell flat on their debut and have risen just 1.5pc since the float.
Dangote Cement remains focused on delivering sustainable value to its shareholders and building on its strong market position. The company said: “This decision does not in any way affect the company’s operations or business plans.” Dangote Cement is Africa’s largest cement producer.
The company’s decision to shelve its London listing plans highlights the challenges faced by the London Stock Exchange in attracting major companies. Dangote Cement's retained primary listing on the Nigerian Exchange (NGX) ensures business continuity. Key stakeholders will monitor market conditions for potential future listings.
Key points
- Dangote Cement cites prevailing market conditions for shelving London listing plans.
- The company will retain its primary listing on the Nigerian Exchange (NGX).
- The decision represents a setback for the London Stock Exchange's efforts to attract major listings.
