The biggest cement makers in Africa, Dangote Cement sold 416 million shares, amounting to 2.3% of the company to Foreign Investors today. The stock sold was valued at 86.1 billion naira (236 million dollars).

A spokesperson for the Nigerian Stock Exchange affirmed the story that Dangote Cement sold 416 million shares at 210 naira per share in six off-market deals negotiated between Stanbic IBTC and Meristem Stockbrokers.

The news of the sale shot up the price of the company’s shares to 240 naira by the close of work today, representing a 7.3 percent gain. Raising the company value to 4.09 trillion naira.

A spokesperson of Dangote Cement also confirmed the sales to some foreign investors, whom he did not identify.

The cement producing company owned by the world’s richest black man, Alhaji Aliko Dangote, had previously been selling off smaller stakes in the company in order to increase it’s free float.

The transaction increases Dangote Cement’s free float to 10.4 percent according to Thomson Reuters calculations, which is still well below the stock market requirement of 20 percent.

The free float for Dangote Cement, which was listed on the Nigerian Stock Exchange in 2010 was waived to encourage more companies to list. The company however, was given 18 months to reach the 20 percent free float level which the company is yet to attain up till now.

In 2013, Dangote Industries sold 1.5 percent of its 95 percent stake in Dangote Cement to South Africa’s Public Investment Corporation (PIC) for $289.3 million.

Subsequently it sold a 1.4 percent stake to Sovereign fund Investment Corp of Dubai (ICD) for $300 million in 2014.

Dangote Cement is presently the biggest company on the Nigerian Stock Exchange, accounting for a third of the market’s total market capitalization.

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