Dangote Sugar Plans ₦485.9bn Rights Issue for Expansion Drive

Dangote Sugar Plans ₦485.9bn Rights Issue for Expansion Drive

Dangote Sugar Refinery Plc has begun plans to raise approximately ₦485.9 billion through a rights issue, in a major capital market move aimed at strengthening its financial position and supporting ongoing expansion projects.

According to a regulatory filing, the company has submitted an application to the Nigerian Exchange Limited (NGX) seeking approval for the listing of 8,097,918,827 ordinary shares of 50 kobo each at a price of ₦60.00 per share.

The proposed offer will be executed on a 2-for-3 basis, meaning shareholders will be entitled to acquire two new shares for every three shares already held.

The company stated that the rights issue will give existing investors an opportunity to increase their stake while enabling Dangote Sugar Refinery to raise fresh capital to fund strategic growth initiatives, expand production capacity, and strengthen its operational efficiency.

A qualification date has been fixed for April 20, 2026, meaning only shareholders recorded on the company’s register as of that date will be eligible to participate in the offer.

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The transaction is being facilitated by a consortium of stockbrokers, including Meristem Stockbrokers Limited, Stanbic IBTC Stockbrokers Limited, and Vetiva Securities Limited, who are responsible for coordinating regulatory approvals and execution of the offer.

Market analysts say the planned ₦485.9bn capital raise ranks among the largest equity issuances on the Nigerian stock market in recent years, reflecting strong corporate appetite for expansion funding amid evolving economic conditions.

They also noted that the pricing structure and rights ratio could encourage strong investor participation, particularly given Dangote Sugar’s dominant position in Nigeria’s sugar production and refining sector and its long-term growth strategy.

The move comes at a time when listed companies in Nigeria are increasingly turning to the capital market to raise funds, as firms respond to inflationary pressures, foreign exchange challenges, and rising production costs.

If fully subscribed, the funds are expected to support backward integration projects, including agricultural expansion and improved refining infrastructure aimed at reducing import dependence and boosting local sugar production.

Dangote Sugar Plans ₦485.9bn Rights Issue for Expansion Drive