Dangote Sugar Refinery Plc has announced plans to raise up to N500 billion through a Rights Issue, subject to regulatory approvals.

This is part of efforts to strengthen its capital base and support future growth. The development was disclosed in a statement signed by the Company Secretary, Mrs. Temitope Hassan, following the company’s 20th Annual General Meeting held in Lagos. The proposed capital raise underscores the company’s strategy to reinforce its financial position and expand operations across its key markets.

The company said shareholders have approved the plan to raise capital through the issuance of ordinary shares. “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 regulatory authorities. It also noted that any shares not taken up by existing shareholders may be offered to other interested investors. The company stated that the initiative is aimed at strengthening its financial capacity to support long-term growth objectives.

The capital raise move comes as Dangote Sugar’s financial performance reflects both growth and improvement. In its 2025 audited results, revenue increased by 24.56% to N829.2 billion, driven largely by strong demand for 50kg sugar, which accounted for N807 billion of total revenue. Retail sugar sales contributed N17.7 billion, while molasses and freight income added N4.02 billion and N66.4 million, respectively. Cost of sales rose by 11.35% to N706.5 billion, largely due to raw material costs of N573.3 billion, resulting in a gross profit of N122.6 billion. The company reported a pre-tax loss of N72.2 billion, an improvement from the N270.8 billion loss recorded in 2024. Regional sales showed Lagos accounting for 55.82%, followed by the North at 35.35%, the West at 6.45%, and the East at 2.38%.

Dangote Sugar said its share capital will be increased to accommodate the new shares to be issued 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 company noted that the capital raise ranks among the largest Rights Issues in Nigeria’s corporate history. The move reflects the company’s ambition to consolidate its market position and scale operations within the industry.

The capital raising plan follows recent leadership changes within the company. Former Group Managing Director/CEO, Ravindra Singhvi, resigned effective November 30, 2025. Thabo Mabe was subsequently appointed as Group Managing Director/CEO-designate from December 1, 2025. Mabe brings over two decades of experience across markets, including South Africa, Germany, and Nigeria. The planned Rights Issue signals Dangote Sugar’s intent to strengthen its balance sheet while positioning for sustained growth under its new leadership.