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Nigerian billionaire Aliko Dangote has shelved plans to list Dangote Cement in London, abandoning a share sale that could have raised about $1 billion as volatility swept global markets.
The cement maker’s board met on Tuesday and, together with selling shareholder Dangote Industries Limited, decided to discontinue the London listing and offering “for now,” the company said in a notice to the Nigerian Exchange. It cited “current market conditions and the firm’s strategic priorities.”
The company said the decision “does not affect its operations or business plans,” and its shares will remain listed in Lagos.
A person with knowledge of the matter told Reuters that turbulence following the US midterm elections drove the decision, and that the company could revisit London “when there’s more stability.” Wall Street fell last week after the Democrats’ midterm victory deepened doubts about the artificial intelligence boom, and London’s FTSE 100 also ended the week lower.
The retreat comes just weeks after the deal appeared close. Billionaires.Africa reported in October that Dangote Cement planned to sell about 10% of the company in a secondary offering worth roughly $1 billion, with investor meetings starting Oct. 27 in London, South Africa and Dubai and a listing possible as early as November.
The banks lined up for the deal included Citigroup, JPMorgan Chase and Standard Bank as global coordinators, with Goldman Sachs, UBS, First Abu Dhabi Bank and Emirates NBD as bookrunners. Shareholders had approved the secondary listing at the company’s annual meeting in July, and the company held a capital markets day in London on Sept. 21.
As a result, the pullback marks the third time Dangote has stepped back from a London listing. The company first explored the idea in 2011 and revisited it in 2018 before shelving it both times.
The decision is also a setback for the London Stock Exchange, which has struggled to attract large new issuers as companies leave the market or are bought by rivals and private equity firms. Airtel Money, which debuted in London last month, has mostly traded around its IPO price of 1.96 pounds.
Meanwhile, Dangote Cement’s valuation at home is near record levels. The company is worth about N24.79 trillion ($18.42 billion), according to Reuters. Its shares jumped 9.6% to N1,469.90 on Monday, a rally that Billionaires.Africa reported added $1.4 billion to Dangote’s fortune.
Dangote owns about 86% of the cement maker, a stake worth roughly $15.8 billion at current prices. The company is the largest cement producer in Africa and the core of his industrial empire alongside the Dangote Petroleum Refinery.
The cement decision comes as Dangote focuses on bringing the refinery to market. The $20 billion plant’s share sale on the Nigerian Exchange, Africa’s biggest ever, drew strong demand, and the refinery is expected to begin trading in early December.
Dangote, Africa’s richest person, has said he wants African investors to share in the growth of his companies, and the refinery offering was designed to draw millions of Nigerian retail buyers.
As a result, the London plan is now on hold until markets calm, leaving Lagos as the only home for both of Dangote’s flagship listings for now.
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