Dangote Sugar seeks regulatory approval for N500b rights issue
Dangote Sugar Refinery (DSR) Plc is seeking regulatory approval to raise about N500 billion from existing shareholders as part plans to expand business growth. The Nigerian Exchange (NGX) at the
Dangote Sugar Refinery (DSR) Plc is seeking regulatory approval to raise about N500 billion from existing shareholders as part plans to expand business growth.
The Nigerian Exchange (NGX) at the weekend confirmed that DSR has submitted application for for the approval and listing of a rights issue of 8.098 billion ordinary shares of 50 Kobo each atN60 per share.
The rights issue will be pre allotted on the basis of two new ordinary shares for every three existing ordinary shares held as at the close of business on Monday, 20 April 2026.
Shareholders had at the recent annual general meeting of the company approved the planned capital raising as part of strategic positioning to strengthen the company’s financial standing, expand its capital base, and accelerate strategic initiatives. T
Shareholders said the rights issue would support the company’s ambitious backward integration projects.
Addressing shareholders, Chairman, Dangote Sugar Refinery Plc, Arnold Ekpe, said that remarked that the year under review saw a marked improvement in performance, despite a challenging economic environment, noting that revenue growth and enhanced EBITDA demonstrate positive operational momentum. However, profitability was weighed down by a foreign exchange loss of N46.7 billion and additional finance costs totaling N128.6 billion.
The Group, he said, posted a turnover of N829.2 billion, a 25 per cent increase over 2024 adding “the loss for the year improved to N64.1 billion from N270.9 billion in the prior year, while EBITDA rose to N149.6 billion, up from N43.0 billion.”
Despite these hurdles, Ekpe assured shareholders that decisive actions are underway to boost operational efficiency and revenue growth. “With shareholder backing for the rights issue, we are in a strong position to bolster our balance sheet, setting the stage for future growth and profitability,” he said.
He emphasised the significance of the backward integration programme themed, “Sugar for Nigeria” as a cornerstone of the company’s strategic vision.
“This initiative is expected to drive profitability and value creation, reduce import dependency, mitigate foreign exchange risks, generate employment, and support local farmers through the out grower scheme.
“Our objective is to produce 1.5 million metric tonnes of sugar annually from domestically cultivated sugarcane. This involves developing approximately 45,000 hectares, with 2.7 million tonnes of cane earmarked for Numan and 3.35 million tonnes for Nasarawa. Achieving this goal requires substantial investments in land development and production capacity over the next five years,” Ekpe said.
Looking forward, he affirmed the company’s commitment to sustainable growth, positive impact, and enhanced profitability, saying that “we will continue optimizing our operations, pursuing market expansion opportunities, and increasing our presence across the nation. Aligned with the Dangote Group’s Vision 2030, we are dedicated to investing in our workforce and technology to consistently deliver exceptional products and customer satisfaction.”
Group Managing Director, Dangote Sugar Refinery, Thabo Mabe, said that Dangote Sugar remains the sole producer of edible refined granulated white vitamin A fortified sugar, sourced from its backward integration site at Numan.
He mentioned that the company is diligently working to secure approximately $1.3 billion needed to fulfill its commitment to achieving a production target of at least 600,000 tonnes annually by 2030.
He said: “We have revised our strategic development plan to meet the 2030 objectives, leveraging the combined potential of DSR Numan Operation and Nasarawa Sugar Company Limited estates. This integrated plan targets substantial cane production of around 6.05 million tonnes across 45,000 hectares from both sites.”
