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 no longer pursuing a UK listing “at this time”, blaming the decision on “current market conditions and the company’s strategic priorities”.
The Lagos-listed manufacturing behemoth, which was founded by African mogul Aliko Dangote, had been lining up a $19bn (£14.2bn) London dual listing, in what would have been among the largest London Stock Exchange debuts in recent years.
But a recent equity market sell-off focused on tech and emerging market stocks has forced Dangote to pause its plans in another blow to the London Stock Exchange.
London IPO would have been boost to stock market
The cement giant’s debut would have been a major fillip to the bourse, which has struggled to attract fresh listings in recent years. Airtel Money became the only major debut of note this year when it made its market debut last month.
Stay in the know
Three daily briefings with the key market moves and top business and political stories.
SUBSCRIBE HEREThe £5.3bn payments firm raised £350m at the October IPO, in what was the largest fresh listing since GSK spun out its consumer healthcare arm Haleon in 2022.
Dangote had previously pushed its dual listing as a means of bolstering liquidity for the group’s shareholders rather than any move to raise fresh funding. The firm, which bills itself as Africa’s largest building materials company, operates in 11 countries and is controlled by Aliko Dangote’s industrials juggernaut Dangote Industries.
Dangote is pursuing a parallel public offering for its refining business, in what promises the largest IPO in African history. The offer attracted $4.1bn of investor bids, the company said on Tuesday.
The cement arm’s decision to abandon the listing will revive pressure on the London bourse, which as well as struggling to attract fresh listings has been battling to stem a wave of departures.
The likes of Easyjet, insurance giant Beazley and testing giant Intertek have all been snapped up by foreign bidders, while payments juggernaut Wise swapped its London listing for New York’s Nasdaq in May.
Dangote Cement insisted its decision to pause its London debut “does not in any way affect the company’s operations or business plans”.