Airtel Africa Becomes Most Valuable Listed Stock
At a stock market valuation of N4.776 trillion, Airtel Africa Plc has beaten Dangote Cement Plc to emerge as the most valuable company listed on the Nigerian bourse (NGX) today.
Due to weak sentiment, the market witnessed heavy selloffs on Dangote Cement Plc shares which plunged the stock market valuation of the largest cement company in Nigeria to N4.440 trillion, from about N4.84 trillion
Both companies initiated a share repurchase programme in 2021 as Broadstreet rumoured plan to list on London Stock Exchange. Dangote plan to buy back its own shares had stalled in 2020 due to COVID-19 pandemic outbreak.
However, after the share buyback was announced last year, Airtel Africa share price has continued to be making an uptrend with reduced volatility. Read: Airtel Africa Market Valuation Inches to N4.776 Trillion
Traded at N1,271 per share on the Nigerian Exchange on 3.758 billion outstanding shares, the telecom company announced today it would be will be joining the FTSE 100 on Monday 31 January 2022.
For Dangote Cement, its share buyback appears not to be strong enough to curb market volatility. Still the mover and shaker of the Nigerian Exchange equity index, but a strong rise in Airtel would likely reduce possible impacts of sell down in Dangote Cement stock.
When Dangote Cement announced a share buyback plan last two years, analysts told MarketForces Africa the company plans London Stock Exchange. MarketForces Africa gathered that the share repurchase programme was a move to obtain the right price and of course reduce the stock volatility.
The majority of Dangote Cement 17 billion outstanding shares are owned by Dangote Industry Limited.