Dangote Sugar raises N485.9 billion as investors oversubscribe rights issue

Dangote Sugar Refinery Plc has successfully raised N485.9 billion through its Rights Issue after investors fully subscribed to the offer.

The company disclosed in a filing on the Nigerian Exchange (NGX) dated August 13, 2026, that the capital raise achieved a 100% allotment rate following an oversubscription that exceeded the number of shares on offer.

Dangote Sugar had offered 8.10 billion ordinary shares of 50 kobo each at N60 per share to shareholders on its register as of April 20, 2026.

What they are saying

According to the company, a total of 14,595 valid applications were received for 8.31 billion ordinary shares valued at N498.57 billion, representing a subscription level of 102.6%.

However, the final allotment was adjusted to align with the approved offer size after a major shareholder scaled down 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% subscribed; however, following the scale-down by a shareholder, only 100% was allotted.”

As a result, the company allotted 8.10 billion shares valued at N485.88 billion.

The adjustment reduced the core shareholder’s request for additional shares by 211.53 million units worth N12.69 billion, leaving it with 78.85% of the additional shares sought.

Strong participation across shareholder categories

The allotment results showed broad participation from shareholders and investors.

• Full acceptances: 13,426 shareholders subscribed to their full rights, accounting for 6.99 billion shares valued at N419.18 billion.
• Partial acceptances: 1,047 applications were received for 99.08 million shares worth N5.94 billion.
• Traded rights: 122 transactions involving 77.18 million shares valued at N4.63 billion were executed on the NGX.
• Additional share requests: 8,241 shareholders applied for extra shares, with 935.41 million shares worth N56.12 billion allotted from renounced rights.

Dangote Sugar noted that the basis of allotment has received approval from the Securities and Exchange Commission (SEC).

The company stated that its registrar, Veritas Registrars Limited, will credit successful allottees’ Central Securities Clearing System (CSCS) accounts by August 14, 2026.

Investors without CSCS accounts will receive their shares through their Registrar Identification Number (RIN).

The registrar will also refund excess subscription funds resulting from the oversubscription by the same date.

Get up to speed

The Rights Issue forms part of Dangote Sugar’s broader strategy to reinforce its balance sheet and support expansion initiatives.

• The company had announced plans in April to raise up to N500 billion through a rights offering, noting that any unsubscribed shares could be offered to other investors.
• It noted that the capital raise ranks among the largest Rights Issues in Nigeria’s corporate history.
• Dangote Sugar said at the time that its share capital would be increased to accommodate the new shares to be issued under the Rights Issue.

The offer price of N60 per share represented a 5.51% discount to the qualification-date market price.

What you should know

The successful fundraising comes on the back of a significant improvement in Dangote Sugar’s financial performance.

• The company reported a profit before tax of N20.6 billion in the first quarter of 2026, compared with a loss before tax of N22.6 billion in the corresponding period of 2025.
• The turnaround was driven largely by lower production costs, with cost of sales declining to N144.6 billion from N204.6 billion, alongside N9.4 billion in other income.

Revenue, however, declined by 12.2% to N187.7 billion from N213.9 billion. Sales of 50kg sugar accounted for about 97% of turnover, while retail sugar, molasses, and freight income contributed the balance.