Dangote Sugar Rights Issue 102.6% Subscribed Amid Strong Investor Confidence

Dangote Sugar Refinery Plc has recorded a successful close to its rights issue, with investor appetite pushing subscription to 102.6 per cent and raising N498.57 billion to support the company’s expansion plans.

The company offered 8.098 billion ordinary shares of 50 kobo each at N60.00 per share on the basis of two new shares for every three shares held as at April 20, 2026.

At the close of the offer on June 24, 2026, Dangote Sugar received 14,595 valid applications for 8.309 billion ordinary shares valued at N498.567 billion. This represents an oversubscription of 211,528,194 shares.

According to the results, 13,426 shareholders accepted their rights in full for 6.986 billion shares valued at N419.18 billion. A further 1,047 shareholders made partial acceptances.

Investor interest was also evident in the secondary market, with 122 transactions for 77.180 million traded rights valued at N4.631 billion executed on the floor of the Nigerian Exchange Limited during the acceptance period.

Dangote Sugar noted that the basis of allotment has received approval from the Securities and Exchange Commission (SEC).

The company stated that its registrar, Veritas Registrars Limited, will credit successful allottees’ Central Securities Clearing System (CSCS) accounts by August 14, 2026.

Capital market stakeholders stated that the oversubscription signals strong confidence in Dangote Sugar’s growth strategy and fundamentals despite current market conditions, saying that the N498.57 billion raised will strengthen the company’s capital base as it continues to drive backward integration and expand capacity in Nigeria’s sugar value chain.

The rights issue forms part of Dangote Sugar’s broader strategy to reinforce its balance sheet and support expansion initiatives.

Speaking at the Company’s recent held annual general meeting, the hairman, Dangote Suga, Mr. 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 emphasized 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.