Dangote Sugar raises US$358.6M in fully subscribed rights issue

NIGERIA – Dangote Sugar Refinery Plc has raised N485.9 billion through a fully subscribed Rights Issue, marking one of the largest capital raises in Nigerian corporate history, according to a company disclosure to the Nigerian Exchange dated August 13, 2026. 

The Lagos-based sugar refiner said the offer achieved a 100% allotment rate after demand exceeded the number of shares available. Dangote Sugar offered 8.10 billion ordinary shares of 50 kobo each at N60 per share to shareholders on its register as of April 20, 2026. 

The offer price represented a 5.51% discount to the company’s share price on the qualification date. 

The company received 14,595 valid applications covering 8.31 billion shares valued at N498.57 billion (US$368.05M), resulting in a subscription level of 102.6%. However, the excess applications did not result in additional shares being issued beyond the approved offer size after a major shareholder reduced its request for additional shares. 

“A total of 14,595 valid applications for 8,309,447,021 ordinary shares valued at N498,566,821,260 were received; therefore, the rights issue was 102 percent subscribed; however, following the scale-down by a shareholder, only 100 percent was allotted,” Dangote Sugar said in its filing. 

The scale-down reduced the major shareholder’s request for additional shares by 211.53 million units, valued at N12.69 billion (US$9.37M). The company ultimately allotted 8.10 billion shares worth N485.88 billion (US$358.68M), matching the original offer size. 

The proceeds will strengthen Dangote Sugar’s balance sheet and support its expansion and backward integration programme, including investments to increase domestic sugar production and reduce reliance on imported sugar. 

The company’s backward integration strategy, known as the “Sugar for Nigeria” programme, targets annual production of 1.5 million metric tonnes of sugar from locally cultivated sugarcane. 

At the company’s annual general meeting, Dangote Sugar Chairman Arnold Ekpe said shareholder support 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. 

He 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,” Ekpe said. 

He added that the programme involves developing 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,” Ekpe said. “Achieving this goal requires substantial investments in land development and production capacity over the next five years.” 

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