- Why I acquired Dangote Cement shares – Otedola
Dangote Cement Plc equities capitalisation reached all-time high of N10.098 trillion on Monday, further driving the market’s positive close on Monday.
Dangote Cement stock price has risen this year by 85.2%.
Nigeria’s billionaire investor, Femi Otedola, recently acquired significant shares in Dangote Cement, noting that his acquisition of Dangote Cement shares underscores the company’s potential.
Dangote Cement has 17,040,507,405 shares outstanding, each valued at N592.60 as at close of trading on Monday.
It rose from preceding day’s low of N538.80, up by N53.80 or 9.99percent; followed by Eterna which moved from N22.95 to N25.20, adding N2.25 or 9.80percent, and Cutix which increased from N2.70 to N2.94, adding 24kobo or 8.89%.
The stock market increased by 1.30 percent, pushing this year’s return to a new high of 28.08%.
The Nigerian Exchange Limited All-Share Index and Market Capitalisation increased further from 94,538.12 points and N51.735 trillion respectively to 95,768.12 points and N52.408 trillion.
In 15,757 deals, investors exchanged 721,813,844 shares worth N14.407 billion.
Dangote Cement is the only cement company in Nigeria with two export terminals, with a combined export capacity of 8 million tons per annum.
The Nigerian stock market has been bullish, with its All-Share Index posting a year-to-date return of 22%, the highest return globally.
An investor who bought Dangote Cement shares for N319 each at the beginning of the year would see their investment worth N1.86 million on Monday, an 86% return.
With a market capitalisation of N9.93 trillion and a share price of N592.60, Dangote Cement is ahead of peers like MTN Nigeria, with a market capitalisation of N6.08 trillion and a share price of N291.
Airtel Africa has the third largest market capitalization at N5.39 trillion, with its stock selling at N2200 per unit, followed by BUA Cement at N5.03 trillion.
BUA Foods’ market capitalisation of N4.32 trillion puts it in fifth place.
Equity investors in the stocks of companies under the Dangote Group have gained over N1.2trn during the first two trading sessions of the past week following the commencement of production by the Dangote Petrochemical Refinery.
The listed companies include Dangote Cement Plc, Dangote Sugar Refinery Plc, and NASCON Allied Industries Plc; the latter companies are in the middle of a merger with another firm, Dangote Rice Limited.
The listing of Dangote Refinery is one that several analysts had projected for this year, seeing it as a major boost for the capital market alongside the possible listing of Dangote Foods (a result of the merger of the Dangote companies) and NNPC Limited.
Speaking on the commencement of production at the refinery, Dangote, described it as “a game changer” and “an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.”
Meanwhile, the billionaire owner of the conglomerate in November revealed plans to list his $20bn Dangote Petrochemical Refinery on the NGX.
Why I acquired Dangote Cement shares – Otedola
Meanwhile, Nigeria’s billionaire, Femi Otedola, has said that his decision to invest in the shares of Dangote Cement Plc was driven by his vision of long-term wealth preservation and the value the company is creating for its shareholders.
He also disclosed that Dangote Cement offers a substantial opportunity to earn foreign exchange, a crucial factor for Nigeria’s economy.
Otedola revealed this in a statement on Monday while explaining his rationale for investing in the shares of Dangote Cement on the floor of the Nigerian Exchange Limited.
The statement reads, “Femi Otedola, a distinguished Nigerian entrepreneur and investor, has announced a significant acquisition of shares in Dangote Cement, the only cement company in Nigeria with two export terminals, with a combined export capacity of 8 million tons per annum.
“This strategic investment underscores Otedola’s confidence in Dangote Cement’s potential to generate foreign exchange for the country and his dedication to supporting businesses that contribute to Nigeria’s economic resilience.
“As Sub-Saharan Africa’s largest cement producer, Dangote Cement boasts an annual production capacity of 51.6 million tons across ten countries; this extensive footprint not only highlights the company’s dominance in the cement industry but also its crucial role in driving economic growth across the region.”
He noted that the recent expansion of Dangote Cement, including the new 6 million-ton plant in Itori, Ogun State, enhances its export capacity and emphasizes the company’s contribution to Nigeria’s economic diversification.
Otedola was quoted to have said, “Dangote Cement’s export capabilities and extensive operations across Sub-Saharan Africa are essential for regional economic integration and growth.
“My investment is a testament to my confidence in its potential to propel Nigeria’s and Africa’s industrial and economic development.”
The statement explained that Otedola’s investment aligns with his vision of long-term wealth preservation and the belief that shareholders should be the primary beneficiaries of a company’s success. “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,” said Otedola.
Dangote Cement’s track record of dividend payments, exceeding N2.1 trillion in recent years, and its commitment to sustainable business practices resonate with these principles.
Otedola’s investment strategy prioritizes companies that are well-managed, have strong governance, and operate under the principle that no individual should be larger than the company.
“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,” Otedola was quoted to have stated.
The statement added that the evolving regulatory landscape in Nigeria, emphasizing Environmental, Social, and Governance compliance, complements Otedola’s investment criteria, stressing that companies like Dangote Cement, adhering to these principles, are more likely to ensure transparency, accountability, and long-term value creation.
“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 added.
