Dangote Cement shelves planned London listing

Dangote Cement Plc has shelved plans to list its shares on the London Stock Exchange, abandoning a proposed transaction that was expected to broaden its access to international investors and provide a route for its controlling shareholder to sell part of its stake.

The cement maker disclosed the decision in a notice to the Nigerian Exchange Limited on Tuesday, following a board meeting held the same day. It said it and its selling shareholder, Dangote Industries Limited (DIL), would not proceed with the proposed secondary listing and offering “at this time”.

The company attributed the decision to current market conditions and its strategic priorities but did not provide further details or indicate whether it intends to revive the plan.

The withdrawal comes months after Dangote Cement renewed its push for a London listing. In May, the company said it was exploring a secondary listing on the UK exchange, explaining that the move would deepen its access to international capital markets and broaden its shareholder base.

Shareholders subsequently approved the proposal at the company’s annual general meeting in July. The company also held a capital markets engagement in London in September as it advanced preparations for the transaction.

The proposed offering involved DIL as a selling shareholder. This meant the transaction was not simply a fresh capital-raising exercise for Dangote Cement. The Financial Times had reported that the proposed sale would involve more than 10 per cent of the company’s shares and was intended to provide investors with greater liquidity.

The decision is a setback to the company’s effort to expand its international investor base through a second stock market listing. It also comes at a difficult time for the London market, which has struggled to attract major new listings and retain some existing companies.

Despite the reversal, Dangote Cement said its shares would remain listed on the Nigerian Exchange and that the decision would not affect its operations or business plans.

“Dangote Cement PLC remains focused on delivering sustainable value to its shareholders and building on its strong market position,” the company said in the notice signed by its Company Secretary, Edward Imoedemhe.

Dangote Cement, part of Aliko Dangote’s business group, has been listed on the Nigerian Exchange since 2010. The company operates across several African markets and is one of the largest cement producers on the continent.

The company did not disclose whether it would reconsider the London listing when market conditions improve.