Dangote cement

[Apache]

Dangote, 12 Others to Import Bulk Cement
Posted Tuesday, January 15, 2008
The Federal Government has given provisional approval to 13 local companies to import bulk cement into the country in order to make up for the shortfall in supply and bring down the prices of the product.
The Minister of Commerce and Industry, Mr. Charles Ugwuh, on Monday announced Federal Government’s decision to allow importation of “bulk cement” – and not “bagged cement” as media reports suggested yesterday.
While bulk cement is imported and re-bagged by local manufactures, bagged cement will come in already branded which could impact negatively on local manufacturing.
Allowing importation of more bulk cement, according to Ugwuh, was aimed at bridging the deficit of 11.5 million tonnes in the supply of cement, which has been recurrent in the industry in the last few years.
The annual demand for cement is estimated at about 18 million metric tonnes, but the annual consumption of cement in the country for last year was estimated at 11.125 million metric tonnes.
THISDAY checks revealed yesterday that the 13 local companies that have been given provisional approval include Dangote Industries Limited, Lafarge Group, West African Portland Cement Plc, Flour Mills Nigeria, Ibeto Cement Company and Eastern Bulkcem Limited.
Others are Quacem Cement Company, Essette (Nig) Limited, Gateway Mining Company Limited, Purecem Industries Limited, Gateway Portland Cement Limited, Westcom Technologies and Energy Service and International Cement Company Limited.
The approval, according to the minister, is for 2008 alone, “in pursuance of government policy to gradually reduce the importation of cement products in a bid to increase value addition, provide employment and guarantee quality of cement consumed in Nigeria”.
The approval is provisional, THISDAY learnt, because a committee is going to assess each company and make sure there is commitment to “backward integration” in the cement industry. This is to avoid giving approval to companies that are not already manufacturing cement in Nigeria or companies that have no commitment to investing in the industry.
A committee is expected to audit existing and planned cement manufacturing investments to confirm the level of commitment to local production.
The minister has warned the 13 companies that anyone found not to meet the backward integration requirements after the audit assessments “will have its licence cancelled and withdrawn”.
In 2001, a policy on bulk cement was approved by the government. This allowed companies to import cement with a proviso that they must show evidence of local manufacturing of the commodity.
The importation was meant to have remained in place till 2006. However, by 2006, local manufacturers still could not meet local demand. The Obasanjo government extended the import regime by one year.
Obasanjo approved 8 million metric tonnes and various companies were given different allocations for the period. With the new extension, local companies are expected to meet up with local demand faster. - Thisday

[dotunk]

when do we expect this giant in the market?

[andico26]

Hi guys,
It is my opinion the dangote cement po will soon start. FBN capital limited the leading issuing house to the offer is already advertising the proposed offer on their website!!!! So maybe Dangote is waiting for his friend Jim Ovia (Zenith bank ) to end his Hybrid Offer! (He laughs) There may be some truth to it!

[hispy99]

Originally Posted by andico26

Hi guys,
It is my opinion the dangote cement po will soon start. FBN capital limited the leading issuing house to the offer is already advertising the proposed offer on their website!!!! So maybe Dangote is waiting for his friend Jim Ovia (Zenith bank ) to end his Hybrid Offer! (He laughs) There may be some truth to it!

Can you please post the link to the advertisement? I cannot find a web site for FBN Capital.

Thanks

[Dark Knight]

FBN Capital: World Class Investment Bankers in Nigeria

I can't seem to find anything on dangote cement

[andico26]

look under key transactions at the top right hand corner and u will see the advert

[Dark Knight]

tnx bros i have seen it.wats up with that.i hope its not so soon.let me raise some money first before this thing comes out. i tried clicking on it too and nothing happened.i wonder why they put there in the first place

[Apache]

Dangote assures investors on Obajana Cement’s planned IPO
Following the huge amount of money returned to shareholders during the just concluded Initial Public Offering (IPO) of Dangote Flour Mills Plc (DFM), the chairman of the group, Alhaji Aliko Dangote has assured investors on the forthcoming IPO of its subsidiaries, Obajana Cement that it will ensure that minimal monies are returned to investors who partake in the offer.
Speaking in Lagos on Monday during the listing of DFM’s five billion ordinary shares of 50 kobo at N15 per share, Dangote expressed regret over the huge amount of money returned to shareholders stating that plans are at advanced stage to ensure that all the subscriptions by investors in the forthcoming offer are accommodated.
He said, “We are striving to ensure that in subsequent offer of our other subsidiaries, all the applications received are allotted. To this end, we are making sure that the size of the offer is very big so as ensure full allotment.
The processes leading to the offer are almost completed, but we will not divulge the commencement date yet. We regret the returned monies and the delay in distributing the monies to investors. We will ensure that it did not happen again in subsequent offers.”
DFM last year raised N18.75 billion from the capital market through an Initial Public Offer of 1.25 billion ordinary shares of 50 kobo each at N15 per share.
According to Dangote, the offer was 600 per cent oversubscribed, leading to its returning more than N100 billion to investors, thereby, making it the most successful IPO in the capital market in terms of percentage subscription.
The Managing Director of DFM, Dr. Michael Zetzstche, promised to pay dividends regularly to investors, promising to expand its operations beyond the present level, especially in its output and production capacity.
He commended investors for the confidence reposed on the company as evidenced in the over subscription, promising to be among the best company on the capital market in terms of returns on investment. - Vanguard

[El-Kayode]

Dear moderator,

I have found this site to be very useful. Please keep the ball rolling.

[BigSeun]

With my experience in dan floor and nascon, am not coming near dangote cement at all. Especially now, with excess liquidity in the system, there will be massive over subscription. No more return money for me!
i dont know of you!

[faoogoke]

Originally Posted by Apache

Dangote assures investors on Obajana Cement’s planned IPO
Following the huge amount of money returned to shareholders during the just concluded Initial Public Offering (IPO) of Dangote Flour Mills Plc (DFM), the chairman of the group, Alhaji Aliko Dangote has assured investors on the forthcoming IPO of its subsidiaries, Obajana Cement that it will ensure that minimal monies are returned to investors who partake in the offer.
Speaking in Lagos on Monday during the listing of DFM’s five billion ordinary shares of 50 kobo at N15 per share, Dangote expressed regret over the huge amount of money returned to shareholders stating that plans are at advanced stage to ensure that all the subscriptions by investors in the forthcoming offer are accommodated.
He said, “We are striving to ensure that in subsequent offer of our other subsidiaries, all the applications received are allotted. To this end, we are making sure that the size of the offer is very big so as ensure full allotment.
The processes leading to the offer are almost completed, but we will not divulge the commencement date yet. We regret the returned monies and the delay in distributing the monies to investors. We will ensure that it did not happen again in subsequent offers.”
DFM last year raised N18.75 billion from the capital market through an Initial Public Offer of 1.25 billion ordinary shares of 50 kobo each at N15 per share.
According to Dangote, the offer was 600 per cent oversubscribed, leading to its returning more than N100 billion to investors, thereby, making it the most successful IPO in the capital market in terms of percentage subscription.
The Managing Director of DFM, Dr. Michael Zetzstche, promised to pay dividends regularly to investors, promising to expand its operations beyond the present level, especially in its output and production capacity.
He commended investors for the confidence reposed on the company as evidenced in the over subscription, promising to be among the best company on the capital market in terms of returns on investment. - Vanguard

I can imagine how he felt about monies that were returned. The man is not a sadist and I did expect him to come own up to the mis-adventure that Dangote flour IPO was to investors.
Let's give him the benefit of doubt. Obajana cement I believe would not be like Dangote flour.

[hispy99]

Originally Posted by faoogoke

I can imagine how he felt about monies that were returned. The man is not a sadist and I did expect him to come own up to the mis-adventure that Dangote flour IPO was to investors.
Let's give him the benefit of doubt. Obajana cement I believe would not be like Dangote flour.

How is he going to prevent oversubscription? Let us not fool ourselves, if what is going on continues, the offer will be massively oversubscribed. I know people are becoming dissolutioned with PO/IPO, so that might be the saving grace.

There is a finite number of shares that can be sold. Check out FBN, they raised over 400billion, how could they have absorbed everything? There's a lot of money coming innto the NSE from foreigners, not to talk of Nigerians taking loans just to make quick profits.

[ttoladele]

I see no reason why there will be no oversubscription of this upcoming IPO, the biggest from Dangote Dynasty! You only need to remember that the he too is out to make profit, otherwise why sell only 30% of Dangote Flour, the minimum rquired to be eligible for listing at NSE ? I believe the game plan is to artificially push up the unit price, and then Mr Dangote can start to sell some of his warehoused shares at stupendous profit before verification of share certificates is completed by his registrar. Though he claims to be helping Nigerians to make money (appluase), he is the biggest beneficiary. This is a symbiotic relationship, no looser in the end. He did the same with the Sugar company. Don't get me wrong, i will definitely partake in the cement offer but i will not be putting all my eggs in only ''dangote basket''.
What do people think? What is the best approach for maximum gain and minimum loss from oversubscription?
Please, the Gurus in the house we need your expert opinions.

[riskreturn]

Originally Posted by hispy99

How is he going to prevent oversubscription? Let us not fool ourselves, if what is going on continues, the offer will be massively oversubscribed. I know people are becoming dissolutioned with PO/IPO, so that might be the saving grace.

There is a finite number of shares that can be sold. Check out FBN, they raised over 400billion, how could they have absorbed everything? There's a lot of money coming innto the NSE from foreigners, not to talk of Nigerians taking loans just to make quick profits.

He is likely to prevent over-subscription simply by richly pricing the shares, e.g. such that the forward P/E ratio of above 30 times! While many investors would still gullibly subscribe for such an expensive IPO, many discerning investors would refrain from subscribing - at least, not large units that they would otherwise have subscribed for. At the same time, Dangote Group would get more money by offering fewer shares, resulting into a sort of "win-win" situation (though, effectively, one-sided win situation) for all.

[odutaa]

when do u think dangote cement will come out

[newton]

ttoladele:

Dangote sold 1.25 bn units of Dangote flour's 5bn shares = 25%
While he sold 3 bn units of Dangote suger's 7bn shares = 30%

Doubt if the min 30% stuff really holds per NSE