Report: Dangote to raise $1bn on London Stock Exchange

Plans are underway for Dangote Cement Plc to raise $1 billion from a share sale on the London Stock Exchange, a report by Bloomberg has claimed.

Bloomberg reports that the company, which is owned by Aliko Dangote, has approached investment banks to discuss a possible listing.

“The Nigerian company, controlled by Aliko Dangote, has approached investment bankers to discuss a potential UK listing, said the people, who asked not to be named as the talks aren’t public,” the report read.

“Once banks have been appointed, it will probably take at least five months to complete the process, one of the people said. The cement maker is also considering issuing a debut Eurobond, according to two different people familiar with the matter.

“Fresh capital would enable Dangote Cement to fund expansion plans in sub-Saharan Africa and broaden its base of investors. It sees London as a more favorable place to attract about $1 billion than in its home base of Lagos.

“It mulled raising equity in London in 2010. At the time, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley helped it prepare a sale that could have raised as much as $5 billion, before the move was abandoned.”

When contacted, Anthony Chiejina, Dangote Cement’s spokesman, denied knowledge of the listing.

“We have not, to the best of my knowledge, taken such a decision,” he said without commenting on the banker talks.

The highest any Nigerian company has raised in an initial public offering is $796 million which was raised by Starcomms in 2008.