Dangote Cement Plc could be considering a London listing in the next two years as it seeks more funds for its expansion.
According to Bloomberg, the cement company will also seek to raise $500 million via the issue of a Eurobond, this is in addition to a ₦300 billion ($833 million) local-currency bond announced last month.
Dangote Cement intends to spend heavily on expansion, with $350 million earmarked for capital projects this year. This includes the building of export facilities at Nigeria’s seaports to boost shipments to neighboring West African countries.
A few days ago the company announced the appointment of Cherie Blair and Mick Davies as Independent Non-Executive Directors. The appointments are seen by industry observers as preparing the way for the eventual listing of the cement group on the London Exchange.
The company, earlier this week also announced the appointment of Joseph Makoju as its substantive Managing Director.
Results from its financial statements for the year ended 31st December 2017 shows a 30.89% surge in revenue from ₦615 billion in 2016 to ₦805 billion in 2017. Profit before tax also grew from ₦180 billion in 2016 to ₦289 billion in 2017 representing a 60.5% increase.
Also, its Q1 2018 financial results also show 16% growth in turnover from ₦208 billion Q1 2017 to ₦242 billion Q1 2018. Profit before tax also grew by 40% from ₦77 billion in Q1 2017 to ₦108 billion in 2018.
However, the increase in revenue was largely due to an increase in cement prices as volumes produced and sold dropped. Its share price is currently trading at ₦245.00 as at today.
There are reports that company has approached investment banks about arranging the IPO with predictions that the share sale could raise about $1 billion.
Dangote Cement Plc is a Nigerian multinational publicly traded cement manufacturer headquartered in Lagos. The company is engaged in the manufacture, preparation, import, packaging, and distribution of cement and related products across the African continent