Fakoyejo OlalekanThe trillionaire club is not for everyone, nor is it for every company. Only a handful has made it to this exclusive list out of the over 150 companies publicly listed in the Nigerian stock market.
As of Thursday, 4 May, there are just five companies that have the key to the trillionaire club; two are from the telecommunications industry, another two from the cement sector and one from the food market.
MTN Nigeria, Airtel Africa, Dangote Cement, BUA Cement and BUA Foods make up the trillionaire club – making them the five most capitalised or valuable companies in Nigeria.
They have a combined worth of N19.32 trillion as of Thursday. At the beginning of the year, their valuation was N18.79 trillion, indicating their worth increased by 2.80 per cent or N526.64 billion year-to-date.
Interestingly, three of the companies; Dangote Cement, BUA Cement and BUA Foods are founded and owned majorly by two Nigerian businessmen, Aliko Dangote and Abdulsamad Rabiu.
Prime Business Africa learnt that Airtel Africa is the most valuable company at N4.69 trillion, with MTN Nigeria following closely with N4.66 trillion market capitalisation.
The third on the list is Dangote Cement, which is valued at N4.60 trillion in the stock market to rank above BUA Cement and BUA Foods, both of which have a valuation of N3.31 trillion and N2.05 trillion.
How Nigeria’s most valuable companies performed
Airtel Africa – Market value down by N1.44 trillion
Airtel Africa started the year with N6.14 trillion market valuation, but the stock market worth of the network provider has slumped by -23.54 per cent year-to-date, as investor apathy grips the firm.
- The capital market’s lack of interest in Airtel Africa this past four months has resulted in selloffs, wiping off N1.44 trillion from its market capitalisation and dragging down shareholders’ investment in the process.
- This has knocked Airtel Africa’s market value down to N4.69 trillion, on the back of its share price depreciating to N1,250, from N1,635 during the period in review.
- However, the N1.44 trillion lost was not enough to make other companies displace Airtel Africa as the most capitalised company in Nigeria.
MTN Nigeria – Market value up by N284.96 billion
While Airtel Africa’s shareholders saw their investments drop, those of MTN Nigeria recorded 6.51 per cent growth in theirs, as demands for the y’ello network raised the latter’s market valuation up by N284.96 billion.
- Within the four months period, MTN Nigeria’s market capitalisation rose to N4.66 trillion, from N4.37 trillion, to close the gap between it and the market rival.
- Investors’ interest in MTN Nigeria has increased the value of the company, resulting in the firm’s share price sitting at N229, above the N215 it was sold at the start of 2023.
- Consequently, MTN Nigeria occupies the second position on the list of the most valuable companies following the 6.51 per cent rise in its market capitalisation.
Dangote Cement – Market value up by N920.18 billion
With N4.60 trillion market capitalisation, Dangote Cement occupied the third position, maintaining its spot at the end of last year after its value rose by 25 per cent during the review period.
- The growth means the company has been one of the most sought-after equities in the stock market considering its share price started the year with N216, but last traded at N270 on Thursday.
- The 25 per cent represents N920.18 billion increase in shareholders’ investment value, which raises Dangote Cement’s value from N3.68 trillion to N4.60 trillion.
BUA Cement – Market value up by N3.38 billion
BUA Cement didn’t enjoy much growth in the last four months, with its valuation rising by 0.10 per cent, from N3.310 trillion to N3.313 trillion.
- The slow growth prevented BUA Cement from moving up on the list of the most capitalised companies in Nigeria, as it added only N3.38 billion to its market value.
- During this period, the company’s shareholders only saw 0.10 per cent growth in their investment, with low demand pushing BUA Cement’s share price to N97.85kobo, from N97.75kobo.
BUA Foods – BUA Cement – Market value up by N765 billion
Unlike its sister company, BUA Foods recorded 59.4 per cent growth in its equity valuation, but it wasn’t enough to lift the company’s rank.
- BUA Foods completed the list of the top five most valuable companies in Nigeria with N2.05 trillion, in contrast to the N1.28 trillion the firm was valued in the capital market earlier this year.
- The growth is reflected in the appreciation of BUA Foods’ share price, which rose from N71.50 kobo to N114 year to date – handing its shareholders N765 billion gain in the process.
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