Dangote Sugar moves to raise N500bn in Mega Rights Issue

Dangote Sugar Refinery Plc has unveiled plans to raise up to N500 billion through a Rights Issue, following shareholder approval at its 20th Annual General Meeting held in Lagos.

The company disclosed the development in a statement signed by its Company Secretary, Temitope Hassan, noting that the capital raise remains subject to regulatory approvals. The initiative is aimed at strengthening the firm’s capital base and positioning it for long-term growth.

According to the resolution passed at the meeting, the board has been authorised to issue ordinary shares under the Rights Issue “on such terms and conditions and at such time as the Directors may deem fit.”

The company added that the offer may be underwritten, depending on the final structure approved by regulators and the board. Shares not taken up by existing shareholders could be made available to other interested investors.

Dangote Sugar said the planned fundraising ranks among the largest Rights Issues in Nigeria’s corporate history, underscoring its ambition to deepen financial capacity and sustain expansion.

The move comes amid improving financial performance, despite lingering losses. In its 2025 audited results, the company posted a 24.56 per cent increase in revenue to N829.2 billion, driven largely by strong demand for its 50kg sugar product, which contributed N807 billion.

Retail sugar sales generated N17.7 billion, while molasses and freight income added N4.02 billion and N66.4 million, respectively.

Cost of sales rose by 11.35 per cent to N706.5 billion, largely due to raw material costs of N573.3 billion, resulting in a gross profit of N122.6 billion.

However, the company recorded a pre-tax loss of N72.2 billion, a significant improvement from the N270.8 billion loss reported in 2024.

A breakdown of regional performance showed Lagos accounting for 55.82 per cent of total sales, followed by the North at 35.35 per cent, the West at 6.45 per cent, and the East at 2.38 per cent.

To accommodate the new shares, the company said its share capital would be increased, while the board has also been empowered to allot shares and manage fractional holdings in line with regulatory requirements.

It added that any unallotted shares after the exercise would be cancelled in accordance with applicable laws.