In a historic move on Monday, Dangote Cement reached a market capitalization of N10 trillion, securing its position as the first company to achieve this milestone on the Nigerian Exchange.
This remarkable feat was accompanied by billionaire businessman Femi Otedola’s substantial acquisition of Dangote Cement shares.
Closing the trading day with a market cap of N10.098 trillion, the company experienced an impressive N917 billion gain, driven by a 9.99% surge in its stock.
This surge contrasts sharply with the N5.451 trillion market cap the firm closed with in 2023.
The closing share price on Monday stood at N590.60 per unit, marking a significant rise.
This development propelled Dangote Cement to dethrone Airtel Africa as the most capitalized stock on the local bourse.
Investors in Dangote Cement have witnessed an outstanding 85.25% appreciation in their investments in terms of capital gains.
Femi Otedola, expressing his rationale for acquiring stakes in Dangote Cement, emphasized the company’s potential to earn foreign exchange and its commitment to Environmental, Social, and Governance (ESG) principles.
He stated, “Dangote Cement’s unique position with two export terminals offers a substantial opportunity to earn foreign exchange, crucial for Nigeria’s economy.”
Otedola highlighted the company’s pan-African presence, strong corporate governance, and impressive ESG compliance track record as factors influencing his investment decision.
He stressed his focus on long-term wealth preservation and supporting businesses that prioritize shareholders.
Dangote Cement’s consistent track record of dividend payments and commitment to sustainable business practices were key attractions for Otedola.
He expressed confidence in the company’s capacity to provide significant returns and contribute to sustainable economic growth.
As of February 2023, Dangote Industries Limited, the parent company, held an 85.8% stake in Dangote Cement. In April 2023, Otedola attempted to acquire Transnational Corporation Plc after purchasing over a 5% stake in the company.
Despite his offer being rejected, Otedola has since divested from Transcorp.
Commenting on the rise in the market cap, financial analyst Rotimi Fakayejo highlighted the three factors influencing stock prices: corporate governance, demand and supply forces, and market hearsay.
He noted the market speculation surrounding Otedola’s investment, drawing parallels to his past impact on FBN Holdings shares. Fakayejo concluded that Nigerian shares, including Dangote Cement, are undervalued and projected future growth beyond the current price levels.
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