Dangote Cement stages a February correction, soars over 20% in the second week 

In a bid to strengthen growth, Dangote recently announced a substantial $400 million investment to expand its Mugher cement plant in Ethiopia, with plans to double its annual capacity to 5 million tons within 30 months.

Before embarking on this expansion, Dangote Cement’s Board of Directors approved a proposal to seek medium- to long-term debt funding in the domestic capital markets in mid-November 2024.

According to the company, the funding will come from new bonds issued under a N300 billion program that the company launched in 2021, which is registered with the Securities and Exchange Commission (SEC).

So far in February 2025, especially in the second week, the company has experienced a correction in the Nigerian stock market, climbing over 20%.

In 2024, Dangote Cement recorded a year-to-date performance of 49.7%, with most of this increase happening in January when the stock rose from an opening price of N319 to N763.

Nevertheless, there was a modest recovery in the second week of February, as the stock climbed over 20% month-to-date.

In mid-November 2024, Dangote Cement PLC announced that its Board of Directors approved plans to raise medium- to long-term debt funding from the domestic capital markets.

By February 2025, Dangote Cement disclosed a plan to invest $400 million (approximately N603.2 billion) to upscale a second production line at its Mugher cement plant in Ethiopia.

Although the full-year results have yet to be released, a Board meeting is scheduled for February 28, 2025, to discuss several key matters, including the Audited Financial Statements (AFS) for the entirety of 2024.

While the precise drivers of the company’s share price in 2024 may remain uncertain, recent positive fundamentals—particularly the plans for a $400 million investment in a second production line and the opportunity to buy shares around the N400 level—are likely influencing investor sentiment.