The market capitalisation of Dangote Cement hit N10tn on Monday, emerging as the first company to achieve that milestone on the Nigerian Exchange.
This is as billionaire businessman, Femi Otedola, who called the founder of the Dangote Group, Aliko Dangote, his “bestie”, had made a significant acquisition of Dangote Cement shares.
The firm closed trading with a N10.098tn market cap after gaining N917bn, following a 9.99 per cent rise in its stock.
The company closed in 2023 with a market cap worth N5.451tn.
Its share at the close of trading on Monday stood at N590.60 per unit.
This month, it displaced Airtel Africa as the most capitalised stock on the local bourse.
In terms of capital gains, Dangote Cement investors have seen 85.25 per cent appreciation in their investment.
Otedola, explaining his reasoning for buying stakes in Dangote Cement in a statement issued on Monday, said the potential of Dangote Cement to earn foreign exchange as well as its compliance with Environmental, Social, and Governance principles made it an ideal investment for him.
“Dangote Cement’s unique position with two export terminals offers a substantial opportunity to earn foreign exchange, crucial for Nigeria’s economy. This, along with the company’s pan-African presence, makes it an ideal investment choice.
“Dangote Cement’s strong corporate governance and impressive ESG compliance track record make it an ideal investment choice. It represents the type of company that not only contributes to Nigeria’s industrial strength but also aligns with my vision for ethical and sustainable business practices,” Otedola stated.
Otedola added that Dangote Cement’s track record of dividend payments and its commitment to sustainable business were major attractions.
He noted, “In my investment decisions, I focus on long-term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success. Companies like Dangote Cement, which consistently deliver value to their shareholders, are fundamental for sustainable economic growth. My investment reflects my belief in its capacity to continue providing significant returns and my commitment to businesses that prioritize their shareholders.”
As of February 2023, the parent company, Dangote Industries Limited held 85.8 per cent stake in the company.
In April 2023, Otedola offered to buy indigenous conglomerate, Transnational Corporation Plc, after buying over five per cent stake in the company.
His offer was, however, rejected and he has since divested from the firm.