Airtel Overtakes Dangote Cement, Becomes Most Valuable Company in Nigeria

• Airtel Africa Plc is now the most capitalised firm on the NGX, surpassing Dangote Cement Plc and thirteen other well-known corporations
• As of October 25, 2024, Airtel Africa's market capitalisation was N8.27 trillion, while Dangote Cement ended at N8.16 trillion
• The stock price of Airtel Africa closed October 25, 2024, at N2,200 per share, up 16.6% year-to-date (YTD) from N1,887.00 per share at the end of 2023

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Airtel Africa Plc, which is listed on the London Stock Exchange (LSE) and Nigerian Exchange Limited (NGX), has surpassed Dangote Cement Plc and thirteen other well-known companies to become the highest capitalized company on the NGX.

The other 13 companies are: MTN Nigeria Communications Plc, Seplat Energy Plc, BUA Foods Plc, Geregu Power Plc, BUA Cement Plc, and Transcorp Hotels Plc.

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Others Include; FBN Holdings Plc, Guaranty Trust Holding Company Plc, United Bank for Africa (UBA), Zenith Bank Plc, Aradel Holdings Plc, Transcorp Power Plc, and Oando Plc.

Dangote Cement closed at N8.16 trillion, while Airtel Africa's market capitalisation was N8.27 trillion as of October 25, 2024.

A few weeks ago, Dangote Cement's stock price hit a 52-week high of N763 a share due to the Exchange's demand for the cement maker, making it the most capitalised firm at N13 trillion.

However, recent events have caused Dangote Cement's stock price to remain stable at N478.8 per share, allowing Airtel Africa to overtake it as the most capitalised listed firm on the NGX as of last Friday's close of business.

Airtel Africa's stock price increased 16.6% year-to-date (YtD) to close October 25, 2024 at N2,200 per share from N1,887.00 per share when it closed 2023, according to a THISDAY analysis of trading data. Dangote Cement's stock price also increased 49.7% YtD to close October 25, 2024 at N478.80 per share from N319.90 per share when it closed last year.

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Capital market analysts attribute the rise in Airtel Africa's stock price to its fundamentals, even if the company reported a decrease in earnings in its half-year results ending in September 2024.

The $80 million in unusual derivative and foreign exchange losses (net of tax) resulting from the Nigerian naira's continued devaluation during the quarter caused Airtel Africa to record a $31 million profit after tax for the half-year that ended in September 2024.

“Airtel Africa’s strong operational performance, driven by customer growth, expanded network coverage, and increased mobile money penetration, was significantly impacted by sustained currency pressures, particularly in Nigeria, resulting in declines in both revenue and profit for the quarter,” said analysts at Cordros Securities.

Data consumption per customer rose by 30.9% to 6.6 GB, and the telco's customer base grew by 6.1% to 156.6 million. The percentage of people using smartphones rose from 5.3% to 42.9%.

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Since President Bola Tinubu took office, the stock market has had a positive trend, which may be attributed to the proactive execution of reforms including the elimination of fuel subsidies and the deregulation of the foreign currency market.

Due to their historically low market prices, overseas investors and high network investors have persisted in holding these 15 stocks despite the Central Bank of Nigeria's (CBN) foreign exchange policy.

Top 5 biggest banks in Nigeria by market capitalization

Legit.ng reported that Zenith Bank, GT Bank and 3 others made the list of the top 5 banks in Nigeria according to market capitalisation.

This is according to data released by the Nigerian Exchange at the close of the market on Monday, November 28, 2022.

The market capitalisation is, in otherwords, the cumulative value of the banks. It is calculated by multiplying the total units of shares held by the price of the shares.

Source: Legit.ng