Dangote Cement aims to buyback up to 10% of its 17.04 billion issued shares and subsequently cancel those shares, it said in a regulatory filing.

The cement company did not say how the buyback would be funded but said the programme will not affect the company's liquidity.

Dangote Cement, majority-owned by Aliko Dangote, Africa's richest man, said in March it planned to commence a share buyback programme this year once it had obtained regulatory approval. It had considered an open tender for the buyback.

Dangote Cement shares were up 9.98% on Monday to 230.40 naira, valuing the firm at 3.93 trillion naira ($10.3 billion)

The shares, which hit bottom in April, rose to an almost two-year high on news of the share buyback.

The gains on Monday helped lift the share index 1.82% to a 2-1/2 year high.

($1 = 381.00 naira)

(Reporting by Chijioke Ohuocha; editing by Louise Heavens and Jaosn Neely)

By Chijioke Ohuocha