Nigerian business magnate Aliko Dangote's estimated fortune has risen to $55.4 billion, driven by a surge in shares of Dangote Cement, the largest cement producer in Africa. This increase of $4.4 billion from $51 billion on October 20 is attributed to gains in the valuation of his publicly traded holdings, particularly Dangote Cement. As a result, Dangote has restored his company's position as the most valuable firm listed on the Nigerian Exchange Limited.
The recent increase in Dangote's wealth has not changed his ranking as the world's 35th-richest person, with his fortune approaching that of Ken Griffin, founder and chief executive of Citadel, whose estimated wealth stands at $57 billion. Dangote Cement's share price rose by 5.82 percent to N1,420, lifting its market capitalisation to N23.96 trillion. This gain pushed the company past Airtel Africa, which had held the position of Nigeria's most valuable listed company since July 8.
Airtel Africa ranked second, with a market capitalisation of N23.68 trillion and a share price of N6,300, while MTN Nigeria came third at N17.3 trillion. The broader market also advanced, with the NGX's total market capitalisation climbing to a record N164.97 trillion. The All-Share Index rose to 254,083 points from 252,882.78 points. Analysts attribute the resilience of the Nigerian equities market in 2023 to strong corporate earnings, improving macroeconomic conditions, and policy reforms.
The rally in Dangote Cement's stock extends a strong run for the company, which has more than doubled in value this year. On Monday, the company's market capitalisation crossed N20 trillion for the first time, after its shares rose 10 percent to N1,222.10. Its market value increased to N20.6 trillion from N18.5 trillion. The stock's rally also pushed it to a 52-week high, reflecting growing investor interest in the Nigerian equities market.
Dangote Cement operates across several African markets, including Nigeria, Ethiopia, Tanzania, Senegal, Zambia, Cameroon, Ghana, the Republic of the Congo, and South Africa. The company's position in the market reflects the scale of Dangote's industrial interests and the growing influence of large listed companies on Nigeria's equity market. The rally coincided with the initial public offering of Dangote Petroleum Refinery and Petrochemicals, which closed on October 27.
The refinery offered 4.1 billion shares at N525 each, targeting N2.15 trillion ($1.6 billion) in what was expected to be one of Nigeria's largest capital-market transactions. The refinery's valuation has also contributed to changes in Dangote's estimated wealth. Forbes' real-time billionaire tracker adjusts estimates to reflect movements in publicly traded holdings, while privately held assets are assessed periodically.
Reports last week indicated that Femi Otedola, chairman of First HoldCo, was considering increasing his investment in Dangote Cement, potentially targeting a stake of up to 5 percent. If completed, the investment would give Otedola a substantial minority interest in one of Dangote's flagship businesses, linking two of Nigeria's prominent businessmen through the cement producer.
Key points
- Aliko Dangote's estimated fortune rises to $55.4 billion.
- Dangote Cement regains top spot as Nigeria's most valuable listed company.
- The company's market capitalisation crosses N23.96 trillion.
