Dangote Sugar Refinery Plc has announced plans to raise ₦500 billion through a Rights Issue, in one of the largest capital-raising moves in Nigeria’s corporate history.
The company said shareholders approved the plan to raise capital through the issuance of ordinary shares at its 20th Annual General Meeting held in Lagos, according to a statement on Monday signed by the Company Secretary, Temitope Hassan.
Subject to regulatory approval, the move is aimed at strengthening the company’s capital base and positioning it for future growth.
“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 added that the Rights Issue may be underwritten, depending on terms approved by the Board and regulators, noting that any shares not taken up by existing shareholders may be offered to other interested investors.
Dangote Sugar said the initiative is designed to reinforce its financial capacity and support long-term expansion plans, even as its latest financial results show a mix of revenue growth and narrowing losses.
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In its 2025 audited accounts, revenue rose by 24.56 per cent to ₦829.2 billion, driven largely by strong demand for 50kg sugar, which contributed ₦807 billion of total revenue.
Retail sugar sales brought in ₦17.7 billion, while molasses and freight income added ₦4.02 billion and ₦66.4 million, respectively.
Cost of sales increased by 11.35 per cent to ₦706.5 billion, largely on the back of raw material costs of ₦573.3 billion, resulting in a gross profit of ₦122.6 billion.
Despite the improved top-line performance, the company reported a pre-tax loss of ₦72.2 billion, a significant reduction from the ₦270.8 billion loss recorded in 2024.
A breakdown of 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.
The company said its share capital will be increased to accommodate the new shares to be issued under the Rights Issue, with the Board 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.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X