Dangote Cement postpones planned London Stock Exchange listing

Dangote Cement Plc has postponed plans to list its shares on the London Stock Exchange (LSE), abandoning a proposed international share offering aimed at widening its foreign investor base.

The decision was disclosed in a regulatory notice signed by Edward Imoedemhe, the company’s secretary, and filed with the Nigerian Exchange Limited on Tuesday, November 10.

The company said the decision followed a review of prevailing market conditions and its strategic priorities. Its parent company and selling shareholder, Dangote Industries Limited (DIL), will also not proceed with the proposed transaction.

“The Board resolved that, in light of current market conditions and the Company’s strategic priorities, the Company announces that it and its selling shareholder, Dangote Industries Limited (DIL) will not proceed with the proposed secondary listing and offering on the London Stock Exchange at this time,” the statement said.

The proposed London listing was part of Dangote Cement’s efforts to expand its international investor base and provide foreign investors with another route to access its shares.

Preparations for the transaction had advanced considerably, with the company hosting a capital markets event in London on September 21 to engage prospective investors and outline its business strategy.

The proposed offering was also expected to involve international investment banks, including Goldman Sachs and UBS, as bookrunners. Reports had put the potential value of the share sale at about $1 billion, with existing shareholders expected to sell part of their holdings.

However, the company has provided no new timeline for the proposed listing or indicated when it might reconsider the transaction.

Imoedemhe said Dangote Cement’s shares would continue to trade on the Nigerian Exchange, where the company has an established investor base.

The company added that the decision would not affect its operations or business plans, with management remaining focused on delivering value to shareholders and sustaining its position in the cement market.

The withdrawal means the Nigerian Exchange will retain the trading activity of one of its largest listed companies, rather than see it extend its market presence to another major international financial centre.

The development comes about two weeks after the close of the Dangote Petroleum Refinery’s initial public offering (IPO), another major capital-raising exercise by the Dangote Group.

The refinery’s IPO attracted investors from 54 countries and raised funds against a target of N2.15 trillion, as part of the group’s efforts to attract international capital and broaden investor participation.

Unlike the refinery’s public offering, the proposed Dangote Cement transaction was structured as a secondary listing and share sale involving existing shareholders, rather than a fresh capital-raising exercise by the company itself.