Dangote Sugar Refinery opens N485.9bn Rights Issue to fuel expansion

Dangote Sugar Refinery Plc has officially launched its massive capital raise, opening a N485.9 billion Rights Issue (out of an approved N500 billion ceiling) aimed at restructuring its balance sheet and fast-tracking its aggressive expansion goals.

The agro-industrial giant is offering 8,097,918,827 new ordinary shares at N60 per share, structured on the basis of two new ordinary shares for every three existing shares held by qualifying shareholders as at the close of business on April 20.

Dangote Sugar Refinery Plc, a subsidiary of Dangote Industries Limited, is engaged in the refining, distribution, and marketing of granulated sugar to wholesalers and major players within the food and beverage, pharmaceutical, and personal care industries.

The capital inject will target critical corporate objectives like the funding the “Sugar for Nigeria” initiative to hit a domestic production target of 1.5 million metric tonnes annually; reducing heavy finance costs and foreign exchange exposures that heavily impacted previous fiscal years; and boosting infrastructure, including upgrading existing refinery and developing greenfield sites.

The Company operates the largest sugar refinery in Sub-Saharan Africa, with a combined installed refining capacity of 1.49 million metric tonnes per annum.

Through its backward integration strategy, DSR is advancing plans to produce an additional 1.5 million metric tonnes of locally sourced sugar, further strengthening its position as a leading integrated sugar producer globally.

The Rights Issue which closes on June 24 is aimed at reducing the Company’s leverage position, improving liquidity, and enhancing its capital structure to support long-term sustainability and shareholder value creation.