Dangote Sugar Launches N485.88bn Rights Issue To Raise Capital

Dangote Sugar Refinery Plc has commenced its N485.88 billion rights issue, offering existing shareholders the chance to purchase additional shares.

The capital raise is aimed at strengthening the company’s balance sheet and supporting its expansion plans.

The Company has issued 8.098 billion shares of 50 kobo each and is structured as two new shares for every three existing shares held at N60.00 each, with a qualification date of April 20, 2026. The offer commenced on May 25, 2026 and to close on June 24, 2026.

Shareholders at the company’s 20th Annual General Meeting approved the capital raising, subject to regulatory approvals.

Speaking, the chairman of Dangote Sugar, Arnold Ekpe, said, “With shareholder backing for the rights issue, we are in a strong position to bolster our balance sheet, setting the stage for future growth and profitability.”

The chairman emphasised the significance of the backward integration program themed, ‘Sugar for Nigeria’, as a cornerstone of the company’s strategic vision.

“This initiative is expected to drive profitability and value creation, reduce import dependency, mitigate foreign exchange risks, generate employment, and support local farmers through the out-grower scheme.

“Our objective is to produce 1.5 million metric tonnes of sugar annually from domestically cultivated sugarcane. This involves developing approximately 45,000 hectares, with 2.7 million tonnes of cane earmarked for Numan and 3.35 million tonnes for Nasarawa. Achieving this goal requires substantial investments in land development and production capacity over the next five years,” Ekpe stated

Market analysts noted that the capital raise ranks among the largest equity issuances on the Nigerian bourse in recent years, reflecting the company’s ambition to scale operations and consolidate its position in the sugar industry.

They added that the pricing of the offer and the 2-for-3 structure could drive strong shareholder participation, particularly given the company’s established market presence and growth outlook.