Getting listed on a stock exchange is the end game for most businesses. After achieving some level of growth, companies that once started small have two main routes to scale.
Some borrow money, while others go with equity and open up their books for a wider range of investors to be a part of their growth journey.
In 2010 Aliko Dangote, Africa’s richest man chose the latter to grow his cement business by offering equity to the public.
Dangote needed capital to boost the production capacity of his cement plants; in return, he dedicated 75% of company earnings for dividend payment. At the time, ₦25 billion had already been paid in dividend to investors by his sister companies- Dangote Flour and Dangote Sugar.
He also assured investors of corporate governance levels that matched international standards.
Dangote’s company had 100 million units of shares to offer, and the public wanted 200