Africa’s richest man, Aliko Dangote, has delayed plans to sell shares in his cement maker on the London Stock Exchange and will instead concentrate on expanding exports and strengthening the company’s foreign exchange reserves, Bloomberg reported on Thursday.
Dangote Cement, which is Africa’s biggest cement-maker, is not expected to pursue a United Kingdom’s initial public offering until at least 2023, Temilade Aduroja, head of investor relations at the company, said by email.
“The London listing is not something which will happen in the short to medium term. We are focused on our export strategy and increasing our foreign-currency revenue,” she said.
Dangote, whose net worth is over $14 billion, has long stated his intention of having a secondary London listing to diversify its ownership and gain access to cheaper funds on international markets.
But for some reasons, the dream has not yet come true. He said in 2018 Dangote Cement would be quoted in London last year but Brian Egan, erstwhile chief financial officer later said 2020 was more probable.
Dangote Cement leveraged a fall in yields in the local debt market to raise N100 billion ($259 million) via commercial papers in April and May, the biggest offering of its kind at that time.
In July, the group said in July it was considering exportation of clinker to 15 Central and West Africa countries in an effort to shore up income and address a dearth of foreign exchange in Africa’s largest economy.
Dangote Cement is anticipated to report volume expansion in the third quarter after the relaxation of curbs across Africa “which bodes well for margins as higher realized prices are expected in Nigeria and the Pan-African region,” Sonia Baldeira, senior industry analyst at Bloomberg Intelligence said in note earlier in October.
The company’s third quarter and nine-month to September 2020 financials are due any moment from now.
Shares in Dangote Cement closed at the last trading session of the Nigerian Stock Exchange at N155.30 per share.
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