Africa’s richest man gains $1.26 billion as Dangote Cement jumps on London listing push

Africa’s richest man, Aliko Dangote, has added another major gain to his fortune after a sharp rally in the shares of Dangote Cement pushed the company to the top of Nigeria’s stock market rankings. The surge lifted Dangote’s stake in the cement giant by N1.72 trillion ($1.26 billion) in just one week, strengthening his position as Africa’s wealthiest individual.

Dangote Cement hits record valuation

Market data from the Nigerian Exchange showed that the value of Dangote’s holding in the company rose from N14.18 trillion ($10.38 billion) on May 4 to N15.91 trillion ($11.64 billion) at the close of the latest trading session. The increase comes as investor demand for Dangote Cement shares gathered pace, pushing its market cap above N18.4 trillion ($13.46 billion).

The rally has also elevated Dangote Cement to the position of Nigeria’s most valuable listed company, overtaking major firms including BUA Foods and MTN Nigeria in market value. Shares of the cement producer climbed 12.1 percent over the past week, rising from N970 ($0.71) to N1,088 ($0.80).

Dangote weighs London share sale

The renewed buying interest in the stock comes at a time when Dangote is weighing a possible partial listing of the cement business in London. People familiar with the discussions said the proposal could involve the sale of about 10 percent of the company to international investors, reviving plans that were previously put on hold years ago.

Dangote has publicly acknowledged that a London listing has been under consideration for some time. He said recent reforms to UK listing rules encouraged fresh discussions around the move, which could open the company to a wider pool of global investors. Banking groups including Citigroup, JPMorgan Chase and Standard Bank are advising on the proposal, according to people with knowledge of the matter.

Dangote Cement extends market lead

Investor interest has also been supported by the company’s strong operating performance across Africa. Dangote Cement remains the continent’s largest cement producer, with annual installed capacity of 55 million tonnes spread across several African markets. Nigeria accounts for 35.25 million tonnes of that total, supported by large manufacturing plants in Kogi and Ogun states that serve both local and export demand.

The company’s latest earnings report added to the positive sentiment around the stock. First-quarter profit rose to N321.1 billion ($233.8 million), compared with N209.25 billion ($152.3 million) during the same period a year earlier. Revenue increased to N1.2 trillion ($872.1 million), while sales volumes climbed to 7.47 million tonnes as stronger pricing and lower finance costs supported earnings growth.