Dangote Cement favours London for faster share sale

Dangote Cement Plc is favouring London over Dubai for a planned international listing, arguing that the UK market offers a faster route to investors and better suits the group’s expanding cement business.

Mariya Dangote, a board member and executive director responsible for the group’s cement and food businesses, said the company had considered a secondary listing in Dubai but concluded that completing the process there could take several years.

“It’s compatible with our business,” she said in Lagos on Thursday, referring to London. “We thought of the secondary listing in Dubai,” but the required timetable made the UK exchange more attractive.

The comments provide the clearest explanation yet of why Africa’s largest cement producer has revived a long-running ambition to trade its shares in London. The company is already listed on the Nigerian Exchange and is examining a secondary quotation that could widen its shareholder base without abandoning Lagos as its primary market.

Dangote Cement confirmed in May that preliminary discussions were under way for a London Stock Exchange listing. The company cautioned at the time that the transaction remained subject to corporate and regulatory approvals, favourable market conditions and agreement on its final structure.

Shareholders subsequently approved the proposed international listing at the company’s annual general meeting in Lagos. The group has been working with financial advisers as it assesses investor demand, valuation and the proportion of shares that could be offered.

The transaction has been discussed as a potential sale of about 10 per cent of the company to outside investors. September has emerged as a possible target, though executives have stressed that the timetable could shift depending on financial-market conditions.

Dangote Cement has a market value of about $13 billion and operates across more than 10 African countries. Its manufacturing network spans Nigeria, Cameroon, Congo, Ethiopia, Ghana, Senegal, Sierra Leone, South Africa, Tanzania and Zambia, giving the group a broader geographic profile than many companies listed only on regional exchanges.

The group has production capacity of roughly 55 million to 60 million tonnes a year and is seeking to increase output to 100 million tonnes by 2030. Planned investment includes additional capacity in Nigeria and projects aimed at supplying export markets across West and Central Africa.

A London quotation could give international fund managers easier access to the company’s shares while improving trading liquidity and price discovery. Many institutional investors face internal restrictions when purchasing securities traded solely on frontier or smaller emerging-market exchanges.

London also offers a large pool of investors familiar with mining, energy, construction materials and other capital-intensive businesses operating across Africa. Dangote Cement believes that compatibility could allow the group to sell shares more quickly and secure broader analyst coverage.

Dubai had been examined because of its growing role as a financial centre connecting Africa, Asia and the Middle East. The emirate has attracted companies, family offices and investment funds seeking exposure to fast-growing economies, while its exchanges have expanded efforts to draw international issuers.

However, Dangote’s comments suggest that procedural timelines outweighed Dubai’s strategic advantages. A prolonged listing process could expose the company to changes in valuations, interest rates and investor sentiment before shares are placed.

The London plan also reflects regulatory changes designed to revive the UK’s equity market. Listing rules have been simplified to make the exchange more competitive after London lost several high-profile offerings to New York and other financial centres.

Dangote Cement previously explored a London listing in 2018, but the plan did not proceed. Regulatory requirements were more demanding at the time, while the wider Dangote group was concentrating financial and managerial resources on building its $20 billion oil refinery near Lagos.

The refinery is now operating, allowing the conglomerate to return to capital-market plans covering several of its largest businesses. The group is also preparing potential listings involving its refining and fertiliser operations as it seeks capital for expansion across the continent.

Dangote Cement recorded a strong start to 2026, supported by price adjustments, higher sales and improved performance outside Nigeria. Profit before tax reached about 421 billion naira during the first quarter, strengthening the company’s position as it approaches overseas investors.

Shareholders approved a dividend payment of approximately 754 billion naira, equivalent to 45 naira per share, based on its 2025 performance. The payout underlined the company’s cash-generating capacity, although investors continue to watch currency volatility, energy costs, infrastructure constraints and uneven construction activity across its markets.