Dangote Cement Plc lost more than N1 trillion in market value today, as its share price fell by 10% in a late-hours sell-off. Its share price fell by 10% to N532 on the Nigerian Exchange (NGX) trading platform, with less than 5% free float reported in the first half of this year.
This disclosed a dissatisfied shareholder’s attempt to leave positions in the cement company, with transaction details indicating that less than 12,000 shares exchanged might cause the company to lose more than N1 trillion in a single day.
Bizwatch Nigeria reported an intraday increase for the local bourse due to purchasing interest in GTCO, Oando Plc, and other early risers. However, a massive selloff of the cement company’s shares reversed intraday.
Bizwatch Nigeria gathered that unimpressed shareholders exited their positions in the cement company following decline in profit margin in the first half of the year. The cement company who has less than 5% free float in the equities market has seen twice selling spree on its share in the second half of 2024.
Dangote Cement Plc took a heavy blow on its market value as investors traded 11,863 shares, out of its 17.040 billion shares outstanding in the local bourse. But just less than 5% of the shares were available for trading.
Both Dangote Industries limited and Stanbic IBTC nominees control; lion’s shares with strong, closely held influence on the cement company’s strategic direction and profit sharing.
Shareholdings details showed that Dangote Industries Limited own 87.28% of the cement company. Another influential shareholder, Stanbic IBTC Nominee, has 5.59% of the cement company under its control.
Apart from directors’ interest in Dangote Cement, both shareholders controlled 92.87% of the cement company in the first half of 2024. Dangote Cement PLC plunged by N1.007 trillion to N9.065 trillion in the equities market from N10.072 trillion at the beginning of the trading sessions
