Foremost cement manufacturing firm, Dangote Cement Plc hit a milestone as a N10 trillion company on Monday at the Nigerian Exchange, the first company to attain such a valuation.
Meanwhile, Business Man, Mr. Femi Otedola also on Monday confirmed investing some N6 billion in Dangote Cement’s shares, citing the potential for value creation in the cement company.
Dangote Cement’s share price rose by 9.99 per cent to close yesterday at N592.60 per share, representing a market value of N10.1 trillion.
The All Share Index (ASI)- the common value-based index that tracks all share prices at the Nigerian Exchange (NGX) rose by 1,230 points or 1.30 per cent to close at 95,768.12 points as against its opening index of 94,538.12 points. The aggregate market capitalisation of all quoted equities appreciated by N673 billion to close at N52.408 trillion compared with its opening value of N51.735 trillion.
There were 24 gainers to 47 losers. gained relative to 47 losers. SUNU Assurance recorded the highest gain of 10 per cent to close at N1.98 per share. Tripple Gee & Company trailed Dangote Cement with a gain of 9.81 per cent to close at N2.35 per share while Eterna rose by 9.80 per cent to close at N25.20.
On the negative side, Cadbury Nigeria, Flour Mills of Nigeria, McNichols, Sovereign Trust Insurance and University Press led the losers with a drop of 10 per cent each to close at N26.10, N42.30, N1.62, 54 kobo and N3.60 respectively. Jaiz Bank followed with a decline of 9.86 per cent to close at N3.11 while Wema Bank lost 9.58 per cent to close at N10.85 per share.
The momentum of activities also slowed down with total turnover dropping by 4.92 per cent to 721.814 million shares valued at N14.408 billion in 15,757 deals. Transnational Corporation (Transcorp) topped the activity chart with 66.521 million shares valued at N1.232 billion. Veritas Kapital Assurance followed with 47.004 million shares worth N34.906 million. Access Holdings traded 40.010 million shares valued at N1.171 billion.
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.
