AFRICA: Nigeria: Dangote Cement Lists 15.5 Billion Shares On NSE

Dangote Cement Plc, on Tuesday, listed its 15,494,019,668 billion ordinary shares of 50 kobo each at N135.00 per by way of introduction on the floor of the Nigerian Stock Exchange (NSE). The demand for the shares superceeded the 100 million shares that was offered for sale as investors demanded close to 200 million shares.

In his remark at the listing ceremony, the NSE Interim Administrator, Mr. Emmanuel Ikazoboh said the listing will add N2.1 trillion or 25 per cent to market capitalisation of the Exchange, adding that the event was historic because it is the biggest issue by a single company to be listed on the NSE.

According to Ikazoboh," History is made today in the anal of the nation's capital market with the listing by Introduction of Dangote Cement Plc's entire Issued Share Capital of 15.5 billion Ordinary Shares of 50k each at N135.00 per share"

Ikazoboh disclosed that the development will boost investors confidence on NSE, urging Nigerian entrepreneurs to come and take advantage of the market by listing their companies on the Exchange.

"I am also calling on those companies that undertook private placement few years back and promised to list their shares on the Exchange after the exercise, to come and do so as the market is eagerly awaiting them"

However, he congratulated the president of Dangote group, Alhaji Aliko Dangote for his unwavering belief in the nation's stock market, stressing that he has singularly contributed more than any Nigerian to the growth and development of the market. "In 2008,10 billion Ordinary Shares of Dangote Sugar Plc was listed on the Exchange at N18 per share; this was followed in 2008 with the listing of Dangote Flour Plc's five billion Ordinary Shares at N15.00 per share. Both companies have remained investor delight ever since", he said.

In the same vein Aliko Dangote said this is the first stage, promising that the company will continously improve on corporate governance in tandem to global practice.

Dangote noted that investors interest will be protected, adding that no additional trade will be made till the next 18 months before any sales can be made. According to him: "The proposed merger is conceived with the goal of consolidating the cement producing entities of Dangote Industries Limited in Nigeria under a single entity presenting a robust platform for the enlarged DCP to optimize on available growth. opportunities having regard to the present state of the Nigerian cement industry.

This is expected to significantly increase production capacity, boost turnover and profitability and eventually lead to an enhanced dividend payout and capital appreciation for the investors." "Our reason for listing any of our companies is to take care of shareholders. So far we have given dividend of over N23 billion this year," he said.