Dangote Cement looking to raise US$5 billion in share sale

Dangote Cement, Africa’s biggest producer of building materials, is reported to be working with three banks to raise US$3 – 5 billion in a London sale of global depositary receipts, valuing the company at as much as US$20 billion. The three banks, Goldman Sachs Group, Inc., JP Morgan Chase & Co and Morgan Stanley are said to be helping Dangote prepare the sale, which is expected to take place some time in 2011. In October 2010, the Lagos-based company raised US$90 million in an initial public offering. It plans to increase capacity more than fivefold to 46.2 million t by 2015 through investments in Nigeria, and other African countries.

An analyst from Afrivest West Africa Ltd said that Dangote Cement is planning the sale because the Nigerian market is not ‘deep’ enough to absorb the volume of shares needed to meet the required 25% free float.

Companies from Russia and Ukraine are among those that sold GDRs in London this year to gain better access to international investors. Mail.ru Group Ltd, a Russian internet company, raised US$912 million in November, and in April, Ukraine’s largest egg farmer, Avangardo Investments Public Ltd sold US$187.5 million of GDRs according to data compiled by Bloomberg.

Read the article online at: https://www.worldcement.com/africa-middle-east/07122010/dangote_cement_looking_to_raise_5_billion_dollars_in_share_sale-/