Dangote Sugar Refinery Plc Launches ₦485.88 Billion Rights Issue

 

Dangote Sugar Refinery Plc has commenced its ₦485.88 billion rights issue to raise fresh capital for strengthening its balance sheet and accelerating its expansion drive. The company is offering 8.098 billion new ordinary shares of 50 kobo each to existing shareholders on the basis of two new shares for every three shares held** at ₦60.00 per share. The offer opened on Monday, May 25, 2026, and will close on Tuesday, June 24, 2026. The qualification date for participation is April 20, 2026. Shareholders approved the capital raising at the company’s 20th Annual General Meeting, subject to regulatory approvals. Vetiva Capital Management Limited is acting as the Lead Issuing House for the transaction. Other issuing houses are Coronation Merchant Bank, Stanbic IBTC Capital, First Capital Limited, Meristem Capital, Quantum Capital, and United Capital Plc. Banwo & Ighodalo is the Solicitor to the Issue. Speaking on the rights issue, 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.” Ekpe emphasised the strategic importance of the company’s backward integration programme tagged ‘Sugar for Nigeria’. “The 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,” he stated. The proceeds will primarily be used to reduce the company’s foreign exchange exposure and funding costs while fast-tracking the backward integration project. Dangote Sugar aims to produce 1.5 million metric tonnes of sugar annually from domestically cultivated sugarcane. This involves developing approximately 45,000 hectares of land, with 2.7 million tonnes of cane earmarked for Numan and 3.35 million tonnes for Nasarawa. Significant investments in land development and production capacity are planned over the next five years. Market analysts have described the capital raise as one of the largest equity issuances on the Nigerian bourse in recent years. They expect strong shareholder participation due to the pricing and the 2-for-3 structure, supported by the company’s strong market position and promising growth outlook.