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Dangote Sugar Refinery Plc has raised N498.57 billion through its rights issue after investors subscribed to 8.309 billion ordinary shares, representing 102.6 per cent of the 8.098 billion shares offered. The rights issue was offered at N60 per share on the basis of two new shares for every three shares held by shareholders as at April 20, 2026.
The company received 14,595 valid applications for 8.309 billion shares valued at N498.567 billion at the close of the offer on June 24, 2026. The subscription exceeded the number of shares offered by 211.528 million units. The basis of allotment has been approved by the Securities and Exchange Commission (SEC), while the company’s registrar, Veritas Registrars Limited, is expected to credit successful allottees’ Central Securities Clearing System (CSCS) accounts by August 14, 2026.
The result showed that 13,426 shareholders accepted their rights in full, accounting for 6.986 billion shares valued at N419.18 billion, while another 1,047 shareholders made partial acceptances. Trading in the rights also took place on the Nigerian Exchange Limited during the acceptance period, with 122 transactions involving 77.18 million rights valued at N4.631 billion.
The proceeds are expected to strengthen Dangote Sugar’s balance sheet and support its expansion and backward integration programme, including investments aimed at increasing domestic sugar production and reducing dependence on imported sugar. The company’s backward integration strategy, known as the ‘Sugar for Nigeria’ programme, is targeted at producing 1.5 million metric tonnes of sugar annually from locally cultivated sugarcane.
At the company’s annual general meeting, the Chairman of Dangote Sugar, Mr Arnold Ekpe, said shareholder support for the rights issue would strengthen the company’s financial position. “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 said the backward integration programme would require substantial investment in land development and production capacity over the next five years. “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.”
He added that the company’s target would involve the development of approximately 45,000 hectares of land, with 2.7 million tonnes of sugarcane earmarked for Numan and 3.35 million tonnes for Nasarawa. “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.
The successful completion of the offer provides the company with additional capital to pursue these investments, while the level of subscription indicates that shareholders collectively took up more shares than were initially offered. The rights issue also comes as Dangote Sugar continues to position its operations around increased local production of sugarcane, with the company seeking to reduce exposure to imported raw materials and foreign exchange-related costs through its backward integration programme.
