Dangote Cement Plc has shelved plans to list its shares on the London Stock Exchange (LSE), abandoning a proposed international share offering expected to attract more foreign investors to the company.
The decision was announced in a regulatory notice signed by Edward Imoedemhe, Dangote Cement Company Secretary, which was filed with the Nigerian Exchange Limited on Tuesday, November 10.
Dangote Cement said the decision was taken after reviewing ‘prevailing market conditions and its strategic priorities’. Its parent company and selling shareholder, Dangote Industries Limited, 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 company’s statement read.
The London listing had been part of the company’s efforts to expand its international investor base and give foreign investors another avenue to access its shares. Preparations had advanced considerably, with the company holding a capital markets event in London on September 21 to engage investors and explain its business strategy.
The proposed transaction 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.
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However, the company has now decided against proceeding, without providing a new timeline for the proposed listing.
Imoedemhe also noted that the company’s shares will continue to trade on the Nigerian Exchange, where it already has an established investor base.
He added that the company stressed that the decision would not affect its operations or business plans, noting that management would remain focused on delivering value to shareholders and maintaining its position in the cement market.
For the Nigerian Exchange, the development keeps one of its largest listed companies anchored to the domestic market, rather than extending its trading presence to another major financial centre.
The company has not said whether it intends to revisit the proposal when market conditions improve
This is coming two weeks after the close of the Dangote Refinery Initial Public Offering (IPO), another subsidiary of the Dangote Group. The Refinery IPO attracted investors from 54 countries and raised over its targeted N2.15 trillion.
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