Dangote Sugar raises N485.9bn after rights issue attracts excess demand

DANGOTE Sugar Refinery Plc has raised N485.88 billion through its recently concluded rights issue after shareholders subscribed for more shares than the company had initially offered.

In a disclosure to the Nigerian Exchange dated August 13, 2026, the company said the offer was 102.6 percent subscribed, although the final allotment was capped at 100 percent of the shares on offer following a scale-down by a major shareholder.

The company had offered 8.10 billion ordinary shares of 50 kobo each at N60 per share to shareholders whose names appeared on its register as of April 20, 2026.

The offer price represented a 5.51 percent discount to Dangote Sugar’s share price on the qualification date.

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According to the company, it received 14,595 valid applications for 8.31 billion shares with a total value of N498.57 billion, exceeding the 8.10 billion shares available under the offer.

However, the excess demand was not fully allotted. A major shareholder reduced its application for additional shares by 211.53 million units, valued at N12.69 billion, resulting in the final allotment being limited to the original 8.10 billion shares.

Dangote Sugar said the shares ultimately allotted were valued at N485.88 billion, representing the full size of the rights issue.

The subscription figures showed significant participation from existing shareholders. Some 13,426 shareholders exercised their rights in full, taking up 6.99 billion shares valued at N419.18 billion.

Another 1,047 investors accepted part of their entitlements, accounting for 99.08 million shares worth N5.94 billion.

Shareholders who did not exercise their rights were able to renounce them for trading on the Nigerian Exchange. The company said 122 transactions involving 77.18 million shares valued at N4.63 billion were recorded.

There was also strong demand from investors seeking shares beyond their existing entitlements. A total of 8,241 shareholders applied for additional shares, with 935.41 million shares valued at N56.12 billion eventually allotted from the renounced rights.

The Securities and Exchange Commission (SEC) has approved the basis of allotment, while Veritas Registrars Limited, the registrar to the offer, is expected to credit successful investors’ Central Securities Clearing System accounts by August 14.

Investors without CSCS accounts will receive their shares through their Registrar Identification Numbers. Refunds arising from excess subscription payments are also expected to be processed by the same date.

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Dangote Sugar had announced the fundraising plan in April, indicating that the rights issue could raise as much as N500 billion. The company also said any shares not taken up by existing shareholders could subsequently be placed with other investors.

The latest exercise ranks among the largest rights issues undertaken by a Nigerian company and forms part of Dangote Sugar’s strategy to strengthen its balance sheet and finance its expansion programme.

The successful capital raise also highlights growing reliance on Nigeria’s equity market by companies seeking to raise long-term funding and reduce financial pressure amid elevated borrowing costs.