Get Guardian on GoogleAliko Dangote, Africa’s richest man, has shelved plans to list his cement empire on the London Stock Exchange, dealing another blow to Britain’s struggling stock market.
Dangote Cement, owned by the Nigerian billionaire, said it had abandoned plans for a secondary listing in the UK, citing prevailing market conditions.
The decision comes weeks after the company’s chairman, Emmanuel Ikazoboh, described the proposed London listing as a “landmark moment”. Africa’s largest cement producer disclosed in May that it was in preliminary discussions over a London listing as part of efforts to attract more international investors and access deeper pools of capital.
The company, valued at ₦24.79 trillion (£13.7 billion), will, however, retain its primary listing on the Nigerian Exchange (NGX). The move represents a setback for the London Stock Exchange as it struggles to attract major companies seeking international capital and strengthen its position as a leading global financial market
The company, which is worth 24.79tn naira (£13.7bn), will remain listed on the main Nigerian stock exchange.
It said: “In light of current market conditions and the company’s strategic priorities, the company announces that it and its selling shareholder, Dangote Industries Limited, will not proceed with the proposed secondary listing and offering on the London Stock Exchange at this time.”
The sudden about-turn is another blow to the City of London, which has suffered a dearth of new listings in recent years.
It comes weeks after Mr Dangote launched Africa’s biggest-ever share sale in September with the listing of his oil refinery on Nigeria’s main stock exchange.
Mr Ikazoboh, Dangote Cement’s chairman, had spoken positively about London during roadshows with investors in recent weeks.
“London is a natural bridge between African opportunity and global investors,” he told The Sunday Times.
Dangote’s decision follows a sharp decline in the FTSE 100 last week as it was swept up by concerns about a slowdown in global AI spending after the US midterm elections.
Few companies have listed in London following a string of global shocks since the pandemic.
Sunil Bharti, an Indian billionaire, tested the market in October with the London Stock Exchange’s biggest listing in five years.
However, shares of Airtel Money, an African payments business that is a subsidiary of FTSE 100 mobile operator Airtel Africa, fell flat on their debut and have risen just 1.5pc since the float.
Dangote Cement said: “This decision does not in any way affect the company’s operations or business plans.
“Dangote Cement remains focused on delivering sustainable value to its shareholders and building on its strong market position.”
