Leaving its home base – Lagos, Dangote Cement’s previous plan to go on with its share sale in London is underway.
Citing London as a strategic market to raise capital, Dangote Cement share sale is estimated to raise about $1 billion, as confirmed by informants who spoke to Bloomberg on the matter.
In 2010, Dangote Cement with help from Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley, had made plans for a sale that could have raised as much as $5bn for equity, but the plan was laid to rest.
Owned by Africa’s richest man, Aliko Dangote, the Nigerian multinational publicly traded cement manufacturer is also considering issuing a debut Eurobond.
According to information gathered by Bloomberg, Dangote Cement had discussed a potential United Kingdom listing with investment bankers, and completing the process will cover duration less than five months, depending on how soon banks are selected.
Disclaiming the report, Anthony Chiejina, Dangote Cement’s spokesman told Bloomberg in an emailed response to questions that: “we have not, to the best of my knowledge, taken such a decision,” with no comment on approaching investment bankers.
Regardless of having free float in Lagos of 14.9% and a market valuation of $12.3 billion, the company’s choice of London will see it breaking record in an initial public offering as no other home-based company has raised more than Starcomms Plc’s $796 million in 2008.
Though discussions are said to be ongoing, Bloomberg reported on Friday that sources mentioned the possibility that “a listing of Africa’s biggest cement maker might not go ahead.”
With Africa’s largest economy rebound from recession in the last quarter of 2017, Dangote cement shares as increased by 51.19% in a year, maintaining its position as the largest company traded on the Nigerian Stock Exchange.