After Otedola's Share Acquisition, Dangote Cement Hits N10 Trillion Capitalisation
- The Dangote Cement market capitalization has crossed N10 trillion, the first Nigerian company to do so
- The company's share price rose by 9.99%, at N590.60 per share, displacing Airtel Africa as the most capitalized stock on the NGX
- The development comes after billionaire businessman Femi Otedola acquired shares of the cement company
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Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The market capitalization of Dangote Cement hit N10 trillion on Monday, January 22, 2024, becoming the first Nigerian company to achieve the feat on the Nigerian Exchange.
The development comes as billionaire and Nigeria's fourth richest man, Femi Otedola, made a significant share acquisition of the Dangote Cement.
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Dangote Cement share price rises by 9.99%
Dangote Cement closed trading with an N10.098 trillion cap after gaining N917, following a 9.99% increase in its stock.
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The company ended 2023 with a market cap of N5.451 trillion.
The firm's share price closed on Monday, January 22, 2024, at N590.60 per unit.
The company displaced Airtel Africa as the most capitalized stock on the NGX.
Regarding capital gains, Africa's biggest cement producer's investors have seen an 85.25% rise in their investment.
Femi Otedola explains the reason behind acquiring Dangote Cement shares
After acquiring the company's shares, Otedola said his action was the potential of Dangote Cement to earn Forex and its compliance with Environmental, social, and Governance principles, making it an ideal investment for him.
The Chairman of Geregu Power said the cement company's track record of dividend payments and its commitment to sustainable business were his significant attractions.
Otedola's botched plan to acquire Transcorp shares
According to Otedola, he focuses on long-term wealth preservation and ensuring shareholders are the greatest beneficiaries of a company's success.
Punch reports that as of February 2023, Dangote Industries Limited held 85.8% stake in the cement firm.
Otedola had moved in April 2023 to acquire the shares of Transnational Corporation Plc.
The billionaire acquired five percent of Transcorp shares, which was later rejected, leading to his divestment from the conglomerate.
Nigeria’s 4th richest man, Otedola invests in Dangote Cement
Legit.ng reported that in a deft move to strengthen his investment portfolio, Nigeria’s fourth richest man, Femi Otedola, is acquiring shares in Dangote Cement.
The development follows Otedola’s re-entry into Forbes Africa’s Richest List, where he is worth about $1.2 billion and is Nigeria’s fourth wealthiest individual.
The development comes as Otedola's visit to the $20 billion 650,000 bpd Dangote refinery.
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Source: Legit.ng
