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Dangote Sugar Refinery Plc has announced plans to raise up to ₦500 billion through a Rights Issue.
The company stated that shareholders have approved the capital raise through the issuance of ordinary shares.
The decision was disclosed in a statement signed by the Company Secretary, Temitope Hassan, following the firm’s 20th Annual General Meeting held in Lagos.
Subject to regulatory approval, the move is aimed at strengthening the company’s capital base and supporting future expansion.
“The Directors of the Company be and are hereby authorised to raise capital of up to N500 billion by way of Rights Issue through the issuance of ordinary shares, on such terms and conditions and at such time as the Directors may deem fit.”
The company noted that the Rights Issue may be underwritten, depending on terms approved by the Board and regulators, adding that any shares not taken up by existing shareholders could be offered to other investors.
It said the initiative is intended to enhance its financial capacity in line with long-term growth objectives.
The planned capital raise comes amid improved financial performance. In its 2025 audited results, revenue rose by 24.56 per cent to ₦829.2 billion, largely driven by strong demand for 50kg sugar, which contributed ₦807 billion of total revenue.
Retail sugar sales generated ₦17.7 billion, while molasses and freight income contributed ₦4.02 billion and ₦66.4 million respectively.
Cost of sales increased by 11.35 per cent to ₦706.5 billion, mainly due to raw material costs of ₦573.3 billion, resulting in a gross profit of ₦122.6 billion.
The company reported a pre-tax loss of ₦72.2 billion, an improvement compared with the ₦270.8 billion loss recorded in 2024.
Regional sales showed Lagos accounting for 55.82 per cent, followed by the North at 35.35 per cent, the West at 6.45 per cent, and the East at 2.38 per cent.
Dangote Sugar also disclosed that its share capital would be increased to accommodate the new shares under the Rights Issue. The Board has been authorised to allot shares and manage fractional holdings in line with regulatory requirements.
“Any unallotted shares after the exercise will be cancelled as permitted by law”, the notice added, noting that the move ranks among the largest Rights Issues in Nigeria’s corporate history.
