Dangote Sugar Refinery Plc has announced plans to raise as much as ₦500 billion through a Rights Issue, following approval from its shareholders.
The development was disclosed in a statement issued after the company’s 20th Annual General Meeting held in Lagos.
According to the company, the capital raise subject to regulatory approvals is designed to strengthen its financial base and position 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 explained that the Rights Issue could be underwritten depending on final terms approved by its Board and relevant regulators. It also noted that any shares not taken up by existing shareholders may be offered to other interested investors.
The planned capital raise is part of a broader strategy to enhance financial capacity and support long-term business objectives.
The announcement comes alongside the company’s latest financial results, which reflect a mix of growth and recovery. In its audited 2025 accounts, revenue rose by 24.56% to ₦829.2 billion, largely driven by strong demand for 50kg sugar, which accounted for ₦807 billion of total earnings.
Retail sugar sales contributed ₦17.7 billion, while molasses and freight income added ₦4.02 billion and ₦66.4 million respectively.
On the cost side, expenses increased by 11.35% to ₦706.5 billion, primarily due to raw material costs of ₦573.3 billion. This resulted in a gross profit of ₦122.6 billion.
The company, however, still recorded a pre-tax loss of ₦72.2 billion, although this marked a significant improvement compared to the ₦270.8 billion loss reported in 2024.
Regionally, Lagos remained the largest market, accounting for 55.82% of total sales, followed by the North at 35.35%, the West at 6.45%, and the East at 2.38%.
To accommodate the Rights Issue, the company stated that its share capital will be increased, with the Board authorised to allot shares and handle fractional holdings in line with regulatory requirements.
“Any unallotted shares after the exercise will be cancelled as permitted by law”, the notice added.
