African cement giant Dangote pauses plans for London IPO
A Nigerian cement giant owned by Africa’s richest man has paused its plans for a London IPO after global stock markets plunged in value last week. In an update to the Nigerian Stock Exchange, Dangote Cement said it was not longer pursing a UK listing “at this time”, blaming the decision on “current market conditions [...]
Nigerian cement giant Dangote has halted its plans for a London IPO due to recent market conditions, according to an update from the Nigerian Stock Exchange. The company, founded by Africa's wealthiest man Aliko Dangote, had been planning a $19bn dual listing on the London Stock Exchange, which would have been among the largest debuts in recent years.
However, the recent equity market sell-off, particularly among tech and emerging market stocks, has forced Dangote to pause its London listing plans. The decision comes as the London Stock Exchange struggles to attract fresh listings in recent years, with only Airtel Money debuting this year. Dangote had presented the IPO as a means of increasing liquidity for shareholders, rather than a move to raise new funding.
The company operates in 11 countries and is controlled by Dangote Industries, which is pursuing a parallel public offering for its refining business, expected to be the largest IPO in African history. The move by Dangote to abandon its London listing will likely revive pressure on the London bourse, which has been battling to stem a wave of departures, including companies like Easyjet, Beazley, Intertek, and payments giant Wise, which recently moved from London to New York's Nasdaq.
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