Dangote Cement Plc, Africa’s leading cement producer, has revived Initial Public Offering (IPO) plans in London that could raise $1billion.
According to a report by Bloomberg, anonymous sources said the Nigerian company has sought out investment bankers to discuss a potential UK listing. Furthermore, different anonymous sources revealed that Dangote Cement is also taking into account issuing a debut Eurobond. However, the company denies these claims.
“We have not, to the best of my knowledge, taken such a decision,” Anthony Chiejina, spokesman, Dangote Cement in Lagos stated.
If the London IPO takes place, Dangote Cement could use the money raised to implement its expansion plans in Sub-Saharan Africa and increase it investors’ base. London is favourable because no company in Nigeria has raised more than Starcomm Plc’s $796 million during an IPO.
The London IPO plan comes at a time when the company is experiencing a surge in shares as it recovers from Nigeria’s economic downturn due to a drop in oil prices in 2014. Dangote Cement has a free float of 14.9 percent in Lagos and a $12.3 billion market valuation.
Aliko Dangote, the man behind Dangote Cement, has a $13.5 billion net worth. The 60-year old has also invested in sugar, packaged foods, and flour. He has often spoken of bidding for Arsenal Football Club.
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