Dangote Sugar Plans N500bn Rights Issue for Expansion

Dangote Sugar Refinery Plc has announced plans to raise N500 billion through a rights issue, pending regulatory approval. This capital mobilization effort aims to strengthen the company's balance sheet and fund long-term expansion initiatives.

The proposal was disclosed in a statement signed by the company secretary, Mr. Temitop Hassan, following the company's 20th annual general meeting held in Lagos, where shareholders reportedly approved the capital raising plan and authorized the board to proceed with the issuance of new ordinary shares. The rights issue will enable existing shareholders to purchase additional shares in proportion to their holdings, with the board empowered to determine the price and structure, subject to relevant regulatory approvals.

The capital raise is expected to enhance financial stability and support expansion across key operational segments. In its 2025 audit results, Dangote Sugar reported a revenue increase of 24.56% to N829.2 billion, driven by strong demand for its 50kg sugar, despite rising product costs impacting profitability.