Dangote Sugar Opens N485.9bn Rights Issue To Fund Expansion Drive

Dangote Sugar Refinery Plc has commenced a N485.88 billion rights issue aimed at strengthening its balance sheet and financing its expansion plans as the company intensifies efforts to boost local sugar production.

The company is offering 8.098 billion ordinary shares of 50 kobo each to existing shareholders on the basis of two new shares for every three shares already held, at N60 per share.

The offer, which opened on May 25, 2026, will close on June 24, 2026, while the qualification date was fixed for April 20, 2026.

The rights issue received shareholder approval at the company’s 20th Annual General Meeting, subject to regulatory clearances.
Chairman of Dangote Sugar, Arnold Ekpe, said the capital raise would position the company for stronger growth and improved profitability.

“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,” Ekpe stated.

He said the company’s backward integration programme, tagged “Sugar for Nigeria,” remains central to its long-term growth strategy.

According to him, the initiative is expected to reduce Nigeria’s dependence on imported sugar, lower exposure to foreign exchange volatility, create jobs 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,” Ekpe said.

He added that achieving the production target would require substantial investment in land development and production infrastructure over the next five years.

Analysts said the rights issue ranks among the largest equity offerings seen on the Nigerian Exchange in recent years, underlining the company’s aggressive expansion ambitions within the country’s sugar industry.

They noted that the pricing structure of the offer and the company’s market position could encourage strong participation from shareholders seeking to benefit from the company’s long-term growth prospects.