Dangote Cement market cap rises by N2.75trn — three days after Otedola’s investment report

The market capitalisation of Dangote Cement has climbed further from the record-breaking N10.09 trillion reported on Monday to over N11 trillion on Tuesday.

The development comes less than 24 hours after the company became the first to cross the N10 trillion market capitalisation threshold.

The firm, a subsidiary of Dangote Industries Limited, is largely owned by Aliko Dangote, Africa’s richest person.

According to data from the Nigerian Exchange Limited (NGX), the cement manufacturer’s share price increased to N651.8 per unit on Tuesday – up from the N592.6 it closed on Monday, with the market capitalisation rising to N11.10 trillion.

The 9.99 percent increase recorded in Dangote Cement’s share price resulted in N1 trillion gain in the firm’s market valuation on a single trading day.

OTEDOLA AS A MAJOR CONTRIBUTOR

Analysis by TheCable Index shows that Dangote Cement has doubled its market valuation in less than a month.

The company closed 2023 with N319.90 per share while its market capitalisation stood at N5.45 trillion.

However, three weeks into January 2024, the company’s share had appreciated by 53.14 percent, rising from N319.90 per unit to N489.90 as of January 18.

Within the same period, the market valuation rose from N5.45 trillion to N8.34 trillion — a difference of N2.89 trillion.

The bullish run was extended after reports circulated on January 19 that Femi Otedola, a power and financial services investor, had acquired an undisclosed amount of shares in Dangote Cement.

Since the report of Otedola’s investment, Dangote Cement’s share price has appreciated by 33.04 percent from N489.90 per unit on January 18, to N651.8 on Tuesday.

The company’s market capitalisation also increased by N2.75 trillion following reports of Otedola’s investment, from N8.34 trillion to N11.10 trillion.

In less than a month, Dangote Cement has outperformed its last year’s share performance of 22.56 percent increase.

Speaking on his aim for investing in Dangote Cement, Otedola said the firm’s export capabilities and broad operations across sub-Saharan Africa are essential for regional economic integration and growth.

He also said the cement producer exemplifies the type of company that not only contributes to Nigeria’s industrial strength but also contributes to his vision for ethical and sustainable business practices.