Dangote Cement Plc’s share price appreciated by 6.18% as it closed at N275.00 per share on Thursday, January 13, 2022. This was after the company launched an initiative to repurchase 170 million ordinary shares from shareholders in the second tranche of its share buyback programme.
As reported on BizWatch Nigeria, the 170 million ordinary shares represents 1% of the company’s issued shares.
Disclosing the buyback programme, Dangote Cement’s Deputy Secretary, Edward Imoedemhe, in a statement, said the programme will run from Wednesday, January 19, to Thursday, January 20, or when the entire shares have been repurchased.
The statement read: “Through its appointed Stockbrokers, the Company will, at its discretion, purchase DCP’s shares in the open market over the duration of Tranche II, subject to prevailing market conditions and under the current daily trading rules of the NGX.
“DCP would however not be under any obligation whatsoever to purchase any or all of the DCP shares put on offer over the duration of Tranche II.
“The shares being repurchased by the Company under the Share Buy-Back Programme will be held as treasury shares and may subsequently be cancelled. Execution of this Tranche II is not expected to have any material impact on the Company’s financial position.
“Dangote Cement shareholders seeking to participate in Tranche II of the Share Buyback Programme are hereby advised to contact their stockbrokers or any other independent professional adviser registered as a capital market operator by the SEC for further guidance on the submission of trades on the NGX’s trading platform.
“DCP will provide weekly updates on the progress of Tranche II of the Programme on its website over the duration of this tranche.
“The Company will continue to monitor the evolving business environment and market conditions in making decisions on further tranches of the Share Buy-Back Programme.
“Shareholders and investors are advised to exercise caution when dealing in the securities of Dangote Cement until the completion of Tranche II of the Share BuyBack Programme. An announcement will be published upon completion of Tranche II of the Programme.”
As trading closed on Thursday, the cement firm’s 6.18% share price jump drove its market capitalisation from N4.41 trillion to N4.69 trillion.
With the latest development, Dangote Cement shares have appreciated by 7.00% from year-to-date, starting the year at N257.00 and traded at N275.00. However, the shares of the company have returned about 38.82% gains for investors who bought them at their 52-week low trading price of N198.10 per share.
During the day’s trading hours, 2,134,365 ordinary shares of Dangote Cement Plc worth about N588.62 million, were exchanged in 294 executed deals.
