Dangote Cement has withdrawn plans for a secondary listing on the London Stock Exchange (LSE), citing unfavourable market conditions in a setback for the UK bourse as it struggles to attract major companies.
The Nigerian cement producer announced the decision on Tuesday, saying its board had reviewed the proposal in light of prevailing market conditions and the company’s strategic priorities.
A person familiar with the matter said recent market volatility following the US midterm elections contributed to the decision. The company could reconsider a London listing when conditions become more stable, the source added.
Global markets experienced significant losses last week after the Democrats’ victory in the US midterm elections intensified concerns about the sustainability of the artificial intelligence investment boom. London’s benchmark FTSE 100 also ended the week lower.
Dangote Cement first disclosed in May that it was holding preliminary discussions about a possible London listing. The move was expected to give the company access to a wider pool of international investors and additional sources of capital.
The cancellation adds to the challenges facing the London Stock Exchange, which has experienced a steady departure of listed companies through takeovers, acquisitions by private equity firms and decisions to move their listings elsewhere. New share offerings have also remained subdued.
African mobile money provider Airtel Money, which joined the London market last month, has traded largely around its initial public offering price of £1.96 since its debut.
Dangote Cement is part of the business empire of Nigerian billionaire Aliko Dangote. The industrialist recently launched what has been described as Africa’s largest-ever share sale through the September initial public offering of his oil refinery on the Nigerian Exchange.
Dangote Cement currently has a market capitalization of 24.79 trillion naira, equivalent to about $18.42 billion.
The company confirmed that its shares would remain listed on the Nigerian Exchange Group (NGX), adding that the decision to abandon the proposed London listing would not affect its operations or business plans.
