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Tag: Dangote Cement

  • ‘Dangote not initiator of SON cement standardisation’

    ‘Dangote not initiator of SON cement standardisation’

    The management of Dangote Cement has refuted claims that it was behind the recent Standards Organisation of Nigeria (SON) standardisation of cement in the country.

    It said though it supports the recent classification of cements as being necessary in the face of building collapses in the country, but it is not the promoter as being insinuated by competitors.

    This was disclosed at a briefing held by the company to clear the air on the accusation that the company has monopolistic tendencies by “other competitors who do not want to standardise their cements as stipulated by SON.”

    The Director of Dangote Cement, Mr Ekanem Etim, said: “It is only economic saboteurs and profiteers that would kick against the new standard for cement production as other countries of the world have moved up beyond the level and the low grade being canvassed by some of the manufacturers opposed to the new standard.”

    Etim said the review and the classification was coming too late after the nation and its citizens have been subjected to harrowing experience of loss of lives and properties and that the regulatory body should spare no further time to enforce the implementation of the new standard.

    He said: “SON is not asking for anything out of this world, just switch, though it might cost more, it is necessary in the interest of the people and the country and wonder why a company which has been operating in the country for decades would find it difficult to switch to 42.5”.

    Tracing the history of the classification as not being alien to cement manufacturers in the country, he noted that “the SON had always set 42.5 as the minimum standard when preponderance of consumption was being serviced with imports and all were importing 42.5 grade, with the little local production being 32.5 grade and now that production has been domesticated, what SON has only done is to extend the 42.5 to cover local production.”

    According to him, the Technical Committee of the SON, which comprised all stakeholders in the building and construction industry including all cement manufacturers, had in the wake of wide spread protest against the collapse of structures across the country in which fingers were being pointed to the low quality of cement as being a key factor in the structure failures, met to review the existing standard.

    The committee at the end of the meeting came up with a review of the standard and classified cement into three grades and stipulated their exclusive uses to guide against misapplication and adulteration.

  • Dangote Cement splashes N1.25b bonus on distributors

    Dangote Cement splashes N1.25b bonus on distributors

    • Group gets seven Kenyan oil blocs

    In appreciation of its customers’ patronage in the previous year, the management of Dangote Cement Plc has rewarded its distributors financially with bonuses amounting to N1.25 billion

    It was a naira rain for distributors of the firm as each and every one of the distributors at a forum in Lagos went home with mouth-watering reward for keeping faith with the company and its product.

    Each of the distributors was presented with a cheque. The highest bonus of N62 million went to Chinedu & Son Investment Nigeria Limited, as the Number One Customer for year 2013.

    Meanwhile, President of the Dangote Group, Aliko Dangote has been given seven Kenyan oil fields for exploration, Kenya’s Chamber of Commerce has said.

    PM News reports that the decision was finalised during a meeting held in Abuja which was attended by both Nigerian President Goodluck Jonathan and Kenyan President Uhuru Kenyatta.

    According to the report, Kenya offered Nigerian investors 46 newly discovered oil blocs during a visit from President Jonathan in September last year.

    Kenya and Nigeria signed an agreement to increase trade and business between the two countries last year.

    Speaking on the N1.25billion bonus, Dangote had earlier said the firm sold 13.3m tons of the product last year, a feat he said was attained through patronage of the distributors.

    He said the payment of the bonus was to celebrate the distributors for their unflinching loyalty and commitment to Dangote Cement which remained the best in spite of intense competition in the industry.

    Dangote said: “We could not have achieved this enviable feat without your immense contributions. That is why we have gathered here to show you our sincere appreciation.  I am delighted to note that during the year you have fine-tuned your sales and marketing strategies to remain on top of the game, as the excellent results we posted for last year demonstrate, and this has allowed us to remain in our leading position.”

    must be innovative. The future belongs to those that are creative and innovative in their approach to doing business. Forward-looking organizations constantly seek innovative ways of doing things in order to stay ahead of the pack.”

    The Dangote Cement boss then used the occasion to formally introduce the Company’s new grade of cement—the 42.5 grade popularly known as Dangote Cement 3X, Big Boss or Big Oga, describing it as a demonstration of the Company’s commitment to its customers.

    “It is a demonstration of our commitment to excellence. It is also a demonstration of our commitment to quality. The 3X stands for ‘extra strength,’ ‘extra yield’ and ‘extra life,’ and it is the product of many years of research and development. We believe in going the ‘extra’ mile for you, our distributors and customers, the end users.

    “Very soon, we will introduce another higher grade brand of 52.5 cement. The 42.5 grade and 52.5 grade will serve different purposes and will give consumers more options”, he explained.

    In his own address of welcome, Group Managing Director of Dangote Cement Plc, Devakumar Edwin thanked the distributors for their loyalty to Dangote cement brand pointing out that they must have seen that they have made a mistake for choosing to do business with the company

    He promised that the cement Company would continue to show appreciation to them and urged them to strive to sell more Dangote cement this year and they would also be rewarded more saying; one good turn deserves another.

  • Dangote Cement hits market with new 52.5N grade

    Dangote Cement hits market with new 52.5N grade

    • Launches higher grade of cement, the first in Africa

    As the debate rages over the quality of cement produced in the country, leading manufacturers of the commodity, Dangote Cement Plc yesterday raised the bar further when it launched a much-higher grade of the product, 52.5N into the market.

    Group Managing Director (GMD) of the company, Devakumar Edwin told reporters in Lagos that Dangote Cement Plc has begun the production of the cement grade from all of its three plants in Ibese, Ogun State, Gboko, Benue State and Obajana in Kogi state.

    The cement firm said it has scored another first as the 52.5 grade of cement is being produced in Africa for the first time, thus attesting to the resolve of the Dangote Cement to be a leading international producer of cement.

    Basking in the euphoria of the new feat, Edwin disclosed that the new cement grade, which has been certified by the Standard Organisation (SON), as conforming to the requirements of NIS 444-2003 and other relevant standards, would sell for the same amount as the lower grade 42.5N type.

    Giving reasons for this, the GMD stated that the its costs more to produce the 52.5 grade but that Dangote Cement decided to sell at the same price in the interest of its customers and so as to make it affordable to all.

    Edwin displayed the SON certificate which read in part “considering the inspection carried out at your factory by a team of SON officers and the outcome of the laboratory samples of the product of your company, I have the pleasure to inform you that the under listed product of your company is hereby adjuged by the SON to conform to the requirements of NIS 444-1:2003 and other relevant standards.”   He explained that the new cement could be used for all construction, but that it is the best for any civil construction having bearing colum.

    Edwin also said though Dangote Cement was also the first to produce the 42.5N grade earlier while other manufacturers were churning out 32.5 grade, pointing out that the desire to research into how to improve the quality of its products necessitated the new grade.

    The Dangote Cement boss reasoned that with the higher grade of cement quality, the incidence of building collapse could be controlled.

    Joseph Makoju, the Honorary Adviser to the President of Dangote Group, Aliko Dangote, described the introduction of the new cement as ground breaking, saying Nigeria is now one of the best quality producers of cement in the world.

    “No matter the sophistication of the structure, this is the best grade for any civil construction. Dangote did not create the standard. The standard has been there, we have only blazed the trail by starting its production. Its’ good for lead bearing colums,” Makoju explained.

  • What stands Dangote Cement out?

    What stands Dangote Cement out?

    Dangote Cement (Dancem) Plc combines size with value. With above-average return and more than a quarter of Nigerian stock market capitalisation, Dancem is unarguably the single most influential stock that has shaped the bullish market outlook at the equities market. Capital Market Editor, Taofik Salako reports that its size and position place Dancem on the watch-list of discerning investors.

    Nigerian equities market opens today with average year-to-date return of 37.96 per cent. This is obviously the most impressive return by any class of regulated and tradable investments in Nigeria. With inflation rate currently at a single-digit rate of 7.8 per cent and the baseline interest rate, as indicated by the Monetary Policy Rate (MPR), at 12 per cent, every average investor in Nigerian stock market can still boast of double-digit inflation-adjusted return on investment. Average return on equities in most cases more than doubled average return by fixed-income securities. The current market situation places equities in good stead to set another record, after it delivered a full-year return of 35.45 per cent in 2012.

    The bullish overall market situation underlines widespread price appreciation as well as the impressive performance of several market-determining stocks. The major boosts for market performance come from the sterling performances of building materials stocks, oil and gas stocks and to some extent, fast moving consumer goods companies. With banking and insurance subsectors, the two populous and most active subgroups at the Nigerian Stock Exchange (NSE), trailing with below average return of 19.47 per cent and 24.57 per cent, non-financial stocks have been the main drivers of the market performance. Dangote Cement leads these influential stocks.

    Dangote Cement opens today with a market capitalisation of N3.331 trillion, about 26.9 per cent of total equity market capitalisation of N12.390 trillion and the highest by any quoted company. The second highest capitalised stock, Nigerian Breweries, controls about 10 per cent of market capitalisation while Nestle Nigeria accounts for about 7.5 per cent. This implies that the pricing trend of Dancem will most often has a ripple effect on the overall pricing trend at the stock market. The pole position of Dancem as a leader of the primary stocks behind the bullish rally is evident in its above-average performance, which helped to moderate the negative impact of stagnant and depreciating stocks.

    At current market price of N195.50 per share, Dancem opens trading today with a year-to-date return of 52.62 per cent. This is higher than average return of 33.81 per cent for the 30 most capitalised stocks at the NSE. Dancem had traded at a high of N210.01 this year, indicating that it had sustained its momentum in spite of profit-taking trend that had characterised transactions in recent period. NSE indicated that Dancem’s share price had doubled from a low of N102 per share in the past 52 weeks. Since share pricing trend primarily rests on the fundamentals of the company, the company’s upwardly pricing trend appears to illustrate its operational and fundamental position.

     

    Stronger fundamentals

     

    Emerging results have shown improved sales efficiency and cost management in the operations of Dancem. Interim report and accounts of Dangote Cement for the nine-month period ended September 30, 2013 showed that turnover rose to N288.98 billion as against N224.49 billion recorded in comparable period of 2012. Gross profit increased from N135.81 billion to N189.38 billion. Profit before tax stood at N151.73 billion compared with N106.43 billion in corresponding period of 2012. With tax gains, net profit increased to N156.13 billion as against N107.06 billion in the previous comparable period. Sales of Dangote cement had increased by 29.5 per cent in Nigeria to 9.95 million tonnes, more than 62 per cent of the estimated 16 million tonnes of cement sold in the country in nine-month period September 30, 2013.

    The third-quarter earnings report placed Dancem in better stead to surpass its full-year performance for 2012. Key extracts of audited report and accounts for the year ended December 31, 2012 had shown that market share rose steadily during the year, averaging an estimated 57.1 per cent in 2012 compared with the 50.5 per cent achieved in 2011. The company recorded a profit after tax of N151.93 billion in 2012 as against N121.4 billion in 2011, representing an increase of 25 per cent. It subsequently paid a dividend per share of N3. Current net earnings position already indicates headroom for dividend growth.

     

    Analysts’ rating

     

    The PEARL Awards Project, an independent not-for-profit capital market research organisation, has awarded Dancem its most prestigious award of “PEARL of the NSE” for two consecutive years. In adjudging Dancem as the most outstanding stock at the NSE in 2013, PEARL Awards noted that the rating reflected the company’s verifiable performance indices. The PEARL Awards is endorsed by the Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator. Having been nominated in almost all the categories and winning more than any other stock in the award categories, the choice of Dancem as the most outstanding stock represented the totality of its profit and loss and balance sheet performances. It had won awards in three other categories including being the winner in the building materials category. Dancem was declared as the winner of the highest profit margin ratio award in the market excellence category while it also won as the company with the highest dividend growth in the capital market.

    President, PEARL Awards Project, Mr. Tayo Orekoya, said the emergence of Dancem as the most outstanding stock for the second consecutive year was a reflection of the company’s fundamental performance.

    According to him, the criteria for the awards are based on verifiable facts and figures, which are usually publicly available in the organisation’s annual stock market publication and brochures.

    “We are very proud to be associated with Dangote Cement and with Dangote Group generally. For the second year running, Dangote Cement is winning the Pearl overall award, emerging as the PEARL of the Nigerian Stock Exchange. This is indeed a thing of joy and a thing to be very proud of,” Orekoya said.

     

    Growth outlook

     

    Chief Executive officer, Dangote Cement Plc, Devakumar Edwin said there is greater potential for the company in the years ahead. According to him, the company’s expansion plan and capacity upgrade significantly increase its sales output and market share not only in the Nigerian cement industry but in Africa.

    Already, Dancem is Nigeria’s leading cement producer with three plants in Nigeria and 13 plants across other African countries. It has moved a step closer to its aim of becoming Africa’s leading supplier of cement with ongoing plans to launch its cement plants in Senegal and South Africa.

    “Our plant in Senegal will soon be producing cement and our South African venture, Sephaku Cement, is well on track to open in the early part of 2014. These two plants will be our first production ventures outside Nigeria as we aim to become Africa’s leading supplier of cement,” Edwin stated in latest review of the company.

    According to him, Dancem ultimate aim is to be able to produce more than 50 million metric tonnes per annum (mta) by the end of 2016. In Ethiopia, Dancem is building a 2.5 million mta plant at Mugher, with production expected early in 2015. In Tanzania, it has begun work on a 3.0 million mta gas-fired plant at Mtwara that is expected to become operational in October 2015. In Zambia, work is underway on a 1.5 million mta plant at Ndola, with cement production expected in mid-2014. In Cameroun, building work is progressing on a 1.5 million mta grinding plant, which is expected to be completed in the first half of 2014. In Congo, Dancem is building an integrated plant of 1.5 million mta, which is expected to begin production in the second quarter of 2016. It also plans to build a 1.5 million mta plant in South Sudan, to become operational in 2016, as well as a 1.5 million mta integrated facility in Kenya.

    In the meantime, Edwin said the group has concluded plans to build import facilities to receive and bag bulk cement produced in Nigeria and Senegal, which will enable the group to synchronise its operations across the major production and distribution centres. Dancem’s Obajana plant in Kogi State, Nigeria, is the largest cement plant in Sub-Saharan Africa with 10.25 million mta across three lines and a further 3.0 million mta currently under construction. Its new 6.0 million mta Ibese plant in Ogun State was inaugurated in February 2012. Building is underway to add 6.0 million mta to the installed capacity of the Ibese plant. Dancem’s Gboko plant in Benue State boasts of 4.0 million mta capacity.

    Dancem is expanding into a growing market. Nigeria has growing demand for cement and other related materials. The largest country in Africa, with some 170 million population and in critical need of development of infrastructure, the need for capital projects especially in housing and roads has continued to grow year-on-year. With steady Gross Domestic Products (GDP) growth, the outlook for the building and construction industry remains bright as it is generally accepted that the level of GDP per capita positively correlates with the level of construction activity. Many initiatives by government and private sector such as the mortgage refinancing scheme are expected to further expand demand for building and construction materials, chiefly cement. This medium-to-long-term outlook appears to be the underlining factor behind Dancem’s pricing trend.

  • What stands Dangote Cement out?

    What stands Dangote Cement out?

    Dangote Cement (Dancem) Plc combines size with value. With above-average return and more than a quarter of Nigerian stock market capitalisation, Dancem is unarguably the single most influential stock that has shaped the bullish market outlook at the equities market. Capital Market Editor, Taofik Salako reports that its size and position place Dancem on the watch-list of discerning investors.

    Nigerian equities market opens today with average year-to-date return of 37.96 per cent. This is obviously the most impressive return by any class of regulated and tradable investments in Nigeria. With inflation rate currently at a single-digit rate of 7.8 per cent and the baseline interest rate, as indicated by the Monetary Policy Rate (MPR), at 12 per cent, every average investor in Nigerian stock market can still boast of double-digit inflation-adjusted return on investment. Average return on equities in most cases more than doubled average return by fixed-income securities. The current market situation places equities in good stead to set another record, after it delivered a full-year return of 35.45 per cent in 2012.

    The bullish overall market situation underlines widespread price appreciation as well as the impressive performance of several market-determining stocks. The major boosts for market performance come from the sterling performances of building materials stocks, oil and gas stocks and to some extent, fast moving consumer goods companies. With banking and insurance subsectors, the two populous and most active subgroups at the Nigerian Stock Exchange (NSE), trailing with below average return of 19.47 per cent and 24.57 per cent, non-financial stocks have been the main drivers of the market performance. Dangote Cement leads these influential stocks.

    Dangote Cement opens today with a market capitalisation of N3.331 trillion, about 26.9 per cent of total equity market capitalisation of N12.390 trillion and the highest by any quoted company. The second highest capitalised stock, Nigerian Breweries, controls about 10 per cent of market capitalisation while Nestle Nigeria accounts for about 7.5 per cent. This implies that the pricing trend of Dancem will most often has a ripple effect on the overall pricing trend at the stock market. The pole position of Dancem as a leader of the primary stocks behind the bullish rally is evident in its above-average performance, which helped to moderate the negative impact of stagnant and depreciating stocks.

    At current market price of N195.50 per share, Dancem opens trading today with a year-to-date return of 52.62 per cent. This is higher than average return of 33.81 per cent for the 30 most capitalised stocks at the NSE. Dancem had traded at a high of N210.01 this year, indicating that it had sustained its momentum in spite of profit-taking trend that had characterised transactions in recent period. NSE indicated that Dancem’s share price had doubled from a low of N102 per share in the past 52 weeks. Since share pricing trend primarily rests on the fundamentals of the company, the company’s upwardly pricing trend appears to illustrate its operational and fundamental position.

     

    Stronger fundamentals

     

    Emerging results have shown improved sales efficiency and cost management in the operations of Dancem. Interim report and accounts of Dangote Cement for the nine-month period ended September 30, 2013 showed that turnover rose to N288.98 billion as against N224.49 billion recorded in comparable period of 2012. Gross profit increased from N135.81 billion to N189.38 billion. Profit before tax stood at N151.73 billion compared with N106.43 billion in corresponding period of 2012. With tax gains, net profit increased to N156.13 billion as against N107.06 billion in the previous comparable period. Sales of Dangote cement had increased by 29.5 per cent in Nigeria to 9.95 million tonnes, more than 62 per cent of the estimated 16 million tonnes of cement sold in the country in nine-month period September 30, 2013.

    The third-quarter earnings report placed Dancem in better stead to surpass its full-year performance for 2012. Key extracts of audited report and accounts for the year ended December 31, 2012 had shown that market share rose steadily during the year, averaging an estimated 57.1 per cent in 2012 compared with the 50.5 per cent achieved in 2011. The company recorded a profit after tax of N151.93 billion in 2012 as against N121.4 billion in 2011, representing an increase of 25 per cent. It subsequently paid a dividend per share of N3. Current net earnings position already indicates headroom for dividend growth.

     

    Analysts’ rating

     

    The PEARL Awards Project, an independent not-for-profit capital market research organisation, has awarded Dancem its most prestigious award of “PEARL of the NSE” for two consecutive years. In adjudging Dancem as the most outstanding stock at the NSE in 2013, PEARL Awards noted that the rating reflected the company’s verifiable performance indices. The PEARL Awards is endorsed by the Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator. Having been nominated in almost all the categories and winning more than any other stock in the award categories, the choice of Dancem as the most outstanding stock represented the totality of its profit and loss and balance sheet performances. It had won awards in three other categories including being the winner in the building materials category. Dancem was declared as the winner of the highest profit margin ratio award in the market excellence category while it also won as the company with the highest dividend growth in the capital market.

    President, PEARL Awards Project, Mr. Tayo Orekoya, said the emergence of Dancem as the most outstanding stock for the second consecutive year was a reflection of the company’s fundamental performance.

    According to him, the criteria for the awards are based on verifiable facts and figures, which are usually publicly available in the organisation’s annual stock market publication and brochures.

    “We are very proud to be associated with Dangote Cement and with Dangote Group generally. For the second year running, Dangote Cement is winning the Pearl overall award, emerging as the PEARL of the Nigerian Stock Exchange. This is indeed a thing of joy and a thing to be very proud of,” Orekoya said.

     

    Growth outlook

     

    Chief Executive officer, Dangote Cement Plc, Devakumar Edwin said there is greater potential for the company in the years ahead. According to him, the company’s expansion plan and capacity upgrade significantly increase its sales output and market share not only in the Nigerian cement industry but in Africa.

    Already, Dancem is Nigeria’s leading cement producer with three plants in Nigeria and 13 plants across other African countries. It has moved a step closer to its aim of becoming Africa’s leading supplier of cement with ongoing plans to launch its cement plants in Senegal and South Africa.

    “Our plant in Senegal will soon be producing cement and our South African venture, Sephaku Cement, is well on track to open in the early part of 2014. These two plants will be our first production ventures outside Nigeria as we aim to become Africa’s leading supplier of cement,” Edwin stated in latest review of the company.

    According to him, Dancem ultimate aim is to be able to produce more than 50 million metric tonnes per annum (mta) by the end of 2016. In Ethiopia, Dancem is building a 2.5 million mta plant at Mugher, with production expected early in 2015. In Tanzania, it has begun work on a 3.0 million mta gas-fired plant at Mtwara that is expected to become operational in October 2015. In Zambia, work is underway on a 1.5 million mta plant at Ndola, with cement production expected in mid-2014. In Cameroun, building work is progressing on a 1.5 million mta grinding plant, which is expected to be completed in the first half of 2014. In Congo, Dancem is building an integrated plant of 1.5 million mta, which is expected to begin production in the second quarter of 2016. It also plans to build a 1.5 million mta plant in South Sudan, to become operational in 2016, as well as a 1.5 million mta integrated facility in Kenya.

    In the meantime, Edwin said the group has concluded plans to build import facilities to receive and bag bulk cement produced in Nigeria and Senegal, which will enable the group to synchronise its operations across the major production and distribution centres. Dancem’s Obajana plant in Kogi State, Nigeria, is the largest cement plant in Sub-Saharan Africa with 10.25 million mta across three lines and a further 3.0 million mta currently under construction. Its new 6.0 million mta Ibese plant in Ogun State was inaugurated in February 2012. Building is underway to add 6.0 million mta to the installed capacity of the Ibese plant. Dancem’s Gboko plant in Benue State boasts of 4.0 million mta capacity.

    Dancem is expanding into a growing market. Nigeria has growing demand for cement and other related materials. The largest country in Africa, with some 170 million population and in critical need of development of infrastructure, the need for capital projects especially in housing and roads has continued to grow year-on-year. With steady Gross Domestic Products (GDP) growth, the outlook for the building and construction industry remains bright as it is generally accepted that the level of GDP per capita positively correlates with the level of construction activity. Many initiatives by government and private sector such as the mortgage refinancing scheme are expected to further expand demand for building and construction materials, chiefly cement. This medium-to-long-term outlook appears to be the underlining factor behind Dancem’s pricing trend.

     

  • Dangote to sell more equity stakes in Dangote Cement

    Alhaji Aliko Dangote, the core investor in Dangote Cement Plc, may have to sell additional 13.4 per cent equity stake out of its dominant majority equity stake of about 94 per cent in Dangote Cement Plc in order to comply with the minimum float requirement of the Nigerian Stock Exchange.

    The dilution, however, could be by way of shares sale or issuance of new shares to the general investing public to dilute the core investor’s shareholding.

    A report on companies in violation of the 20 per cent free float by the NSE obtained by The Nation had shown that Dangote Industries Limited (DIL), the holding company of Alhaji Aliko Dangote; and core investor in Dangote Cement has up till October 2014 to sell down or dilute its shareholdings in the cement company. The report was dated July 05, 2013.

    Dangote Industries Limited was mandated by the NSE to either sell down or dilute its shareholdings to enable the company meet the crucial 20 per cent free float requirement for the main board of the Exchange.

    The report indicated that Dangote Cement, the most capitalised company on the NSE, only has a free float of 5.11 per cent. However, DIL recently sold 1.5 per cent equity stake to the South African government. The deal, totaling N45.75 billion, was consummated the NSE. South Africa, through its wholly owned investment company, Public Investment Corporation of South Africa (PIC), acquired 255.61 million ordinary shares of 50 kobo each of Dangote Cement at N179 per share.

    By the expiration of the deadline, Dangote Industries is required to have completed partial divestments or dilution of its shareholdings to free 20 per cent equity stake for public holding, unless the management of the NSE grants fresh waivers and extensions for the company. In the extreme instance, a company with deficient public float may opt to delist its shares.

    The NSE did not respond to enquiry on possibilities of further waiver and continuing subsistence of a company on its main board with a deficient free float.

    The Nation’s investigation indicated that Dangote Industries may divest as much as N422 billion, according to current market valuations. DIL may have to sell about 2.28 billion ordinary shares of 50 kobo each if it chooses the divestment option. Dangote Cement opened yesterday at N185 per share.

    However, the NSE’s report indicated that the timeline for the compliance with the 20 per cent minimum public float was given to Dangote Industries after it had applied for waivers from the Quotations Committee of the NSE. It was said to have outlined plans to meet the minimum public float, which the NSE took into consideration in extending the timeframe for compliance with the minimum public float.

    Public float is technically a synonym of public shareholder and it refers to the shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

    Thus, public shareholders and public float do not include shareholders or shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

    Key extracts of audited report and accounts for 2012 showed that market share rose steadily during the year, averaging an estimated 57.1 per cent in 2012 compared with the 50.5 per cent achieved in 2011. The company announced a profit after tax of N151.93 billion up from N121.4 billion of 2011 representing an increase of 25 per cent. The company paid a dividend per share of N3.

    Dangote Cement plans to list on the London Stock Exchange (LSE). Already the largest cement producer in sub-Saharan Africa, Dangote Cement wants to reach 43 million metric tonnes in 2015. With three plants and 70 per cent market share in Nigeria, the company has contracts to construct factories in eight African countries, from Senegal to South Africa to Ethiopia.

    Meanwhile, Union Global Partners Limited, the core investor in Union Bank of Nigeria Plc and other core investors in Tourist Company of Nigeria were also required to reduce their shareholdings. Union Global Partners is required to either sell down or dilute its shareholdings on or before June 2017 while NPF Microfinance Bank has up till the end of next month to increase its public float. Union Global Partners Limited, a special purpose vehicle that included many investment firms including African Capital Alliance (ACA), investment funds of The Netherland and United States Governments and other Nigerian investors.

    Union Bank of Nigeria falls short of the minimum float by 6.0 per cent, implying either a divestment of some 1.02 billion ordinary shares by the core investors or issuance of supplementary shares to general investing public.

    Tourist Company of Nigeria has the highest deficiency rate of 18.69 per cent, indicating possible divestment of some 420 million ordinary shares.

    Stock markets maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation. Besides, it provides the general investing public with opportunity to reasonably partake in the wealth creation by private enterprises.

    The recently revised listing rules of the NSE stipulates that the public shall hold a minimum of 20 per cent of each class of equity securities of a company quoted on the main board, 15 per cent of each class of equity securities of a company quoted on the Alternative Securities Market (ASeM) and 10 per cent of each class of equity securities of a dual-listed company. Prior to the review, the minimum public float for the main board of NSE was 25 per cent.

  • All-Share Index crosses 35,000 mark since 2008 – NSE

    All-Share Index crosses 35,000 mark since 2008 – NSE

    The Nigerian Stock Exchange (NSE) reported on Friday that its All-Share Index crossed to 35,000 mark for the first time after the capital market crashed in 2008.

    The News Agency of Nigeria (NSE) reports that the index appreciated by 606.95 points or 1.76 per cent to close at 35,109.33 on Friday from the 34,502.38 posted on Thursday.

    Similarly, the market capitalisation, which opened at N11.03 trillion, grew by N194 billion to close at N11.23 trillion as a result of price appreciation.

    Guinness led the gainers’ table by N7.87 to close at N274.02 per share.

    Dangote Cement appreciated by N6.80 to close at N185, while UACN inched by N5.88 to close at N64.68 per share.

    Total gained N5 to close at N143, while Nigerian Breweries rose by N1.49 to close at N161.50 per share.

    Analysts attributed the renewed interest in the equities to improved first quarter results released by some companies this week

    They also attributed the new interest to the dividend of N1.50 and bonus of one for five shares proposed by UACN in the 2012 financial year.

    Conversely, Beta Glass topped the losers’ chart by 67k to close at N10 per share.

    Ashaka Cement dipped by 45k to close at N23.30, while ETI lost 24k to close at N15.21 per share.

    RT Briscoe dropped 18k to close at N1.62, while UBA Capital lost 12k to close at N1.08 per share.

    NAN reports that the volume of shares traded appreciated by 89.10 per cent due to the exchange of 573.47 million shares worth N5.41 billion in 4,958 deals.

    This was against the 303.26 million shares valued at N3.75 billion traded in 5,756 deals on Thursday.

    UBA was the toast of investors, accounting for 362.55 million shares worth N2.54 billion.

    Skye Bank sold 33.01 million shares valued at N190.59 million, while FBN Holdings recorded a turnover of 22.20 million shares worth N434.12 million.

  • NSE market capitalisation appreciates by N132bln

    NSE market capitalisation appreciates by N132bln

    Activities on the Nigerian Stock Exchange (NSE) closed on Tuesday on the  upbeat note with  the market capitalisation appreciating by N132 billion as a result of price gains by some blue chips.

    The News Agency of Nigeria (NAN) reports that the market capitalisation rose by 1.25 per cent to close at N10.692 trillion from the N10.56 trillion achieved on Tuesday.

    Also, the All-Share Index, which opened at 33,080.83, rose  by 359.74 points to close at 33,440.57.

    Nestle recorded the highest price gain of N10.50 to close at N890 per share.

    It was trailed by Dangote Cement with a gain of N5.88 to close at N162, while Lafarge Wapco appreciated by N5.01 to close at N77 per share.

    CAP gained N3.87 to close at N42.57, while Guinness rose by 68k to close at N265.28 per share.
    Conversely, FBN Holding led the losers’ table, dropping N1.82 to close at N18.11 per share.

    Union Bank and Eterna Oil followed with a loss of 29k each to close at N8.31 and N2.65 per share, respectively.

    UBA lost 18k to close at N6.80, while FCMB dropped 17k to close at N4.13 per share.

    In all, investors bought and sold 419.25 million shares worth N3.71 billion traded in 5,183 deals, indicating an increase of 112.63 per cent.

    This was in contrast with a turnover of 197.17 million shares valued at N2.76 billion transacted in 4,820 deals on Monday.

    Unity Bank was the toast of investors with an exchange of 107.10 million shares worth N69.15 million.

    Access Bank came second on the activity chart, accounting for 69.15 million shares valued N658.89 million, while Diamond Bank traded 35.05 million shares worth N203.19 million.

  • NSE All-Share Index grows by 0.05%

    NSE All-Share Index grows by 0.05%

    The All-Share Index of the Nigerian Stock Exchange (NSE) on Wednesday appreciated marginally by 0.05 per cent.

    The News Agency of Nigeria (NAN) reports that the All-Share Index increased by 18.29  points to close at 33,352.96 against the 33,334.67 achieved on Tuesday.

    Also, the market capitalisation grew by N6 billion to close at N10.661 trillion from the N10.655 trillion recorded on Tuesday.

    Analysts attributed the development to investors’ preference for capital appreciation due to disappointing 2012 result announced by some quoted companies.

    Dangote Cement led the price gainers, appreciating by N4.10 to close at N161.10 per share.

    PZ Cussons came second with a gain of N3.33 to close at N39, while BOC Gases garnered 50k to close at N8.50 per share.

    Unilever gained 41k to close at N52.41, while Zenith Bank appreciated by 36k to close at N19.40 per share.

    On the other hand, Nestle topped the losers’ chart with a loss of N14.01 to close at N922 per share.

    Julius Berger lost N2.01 to close at N51.90, while Presco dipped by N1.57 to close at N24 per share.

    Flour Mills lost N1.29 to close at N76.11, while Ashaka Cement shed 97k to close at N25 per share.

    Wema Bank drove the day’s activities with 302.03 million shares worth N422.75 million.

    It was trailed by ETI with a total of 113.14 million shares valued at N1.81 billion.

    NAN reports that the volume of shares traded increased by 116.55 per cent as investors staked N9.35 billion on 766.57 million shares in 6,183 deals.

    This was against the 352.15 million shares worth N3.59 billion traded in 6,705 deals on Tuesday