-
Investors placed ₦498.6bn worth of bids for Dangote Sugar’s rights issue, exceeding the ₦485.9bn offer by ₦12.7bn. The strong demand pushed the offer into oversubscription.
-
The company received 14,595 valid applications for 8.31bn shares, representing a 102.6 percent subscription level. All 8.10bn shares on offer were ultimately allotted.
-
Dangote Sugar will raise ₦485.9bn in fresh capital following the successful offer. The funds are expected to strengthen its balance sheet and support the company’s expansion strategy.
August 14, (THEWILL) — Dangote Sugar Refinery Plc has raised ₦485.9 billion through its Rights Issue after investors submitted applications worth ₦498.6 billion, pushing demand above the number of shares available for subscription.
The company disclosed in a filing on the Nigerian Exchange (NGX) dated August 13, 2026, that the offer received 14,595 valid applications for 8.31 billion ordinary shares, representing 102.6 percent subscription.
Dangote Sugar had offered 8.10 billion ordinary shares of 50 kobo each at ₦60 per share to shareholders on its register as of April 20, 2026.
The company said the final allotment was adjusted to the approved offer size after a major shareholder scaled down its request for additional shares.
Investors push demand above offer
The total applications amounted to ₦498.57 billion, exceeding the value of shares on offer by about ₦12.69 billion.
However, only the original 8.10 billion shares were ultimately allotted, bringing the value of the capital raised to ₦485.88 billion.
Dangote Sugar said the scale-down followed a reduction in a major shareholder’s request for additional shares.
The shareholder’s request was reduced by 211.53 million shares valued at ₦12.69 billion, leaving it with 78.85 percent of the additional shares it had sought.
The outcome means the company achieved full allotment of the Rights Issue despite receiving more applications than the available shares.
READ ALSO: Finance Charges Drive Dangote Sugar To ₦41.5bn Profit
Dangote Sugar Targets ₦500bn Rights Issue To Boost Capital And Expansion Plans
Strong shareholder participation
The allotment results showed broad participation across different categories of shareholders.
A total of 13,426 shareholders fully accepted their rights, accounting for 6.99 billion shares valued at ₦419.18 billion.
Another 1,047 applications were submitted for partial acceptance, covering 99.08 million shares worth ₦5.94 billion.
There were also 122 transactions involving 77.18 million rights valued at ₦4.63 billion traded on the NGX.
In addition, 8,241 shareholders requested additional shares, with 935.41 million shares valued at ₦56.12 billion eventually allotted from renounced rights.
Dangote Sugar said the Securities and Exchange Commission (SEC) had approved the basis of allotment.
Its registrar, Veritas Registrars Limited, is expected to credit successful allottees’ Central Securities Clearing System (CSCS) accounts by August 14, 2026.
Investors without CSCS accounts will receive their shares through their Registrar Identification Number, while excess subscription funds arising from the oversubscription will also be refunded.
Capital raise supports expansion strategy
The Rights Issue forms part of Dangote Sugar’s broader strategy to strengthen its balance sheet and support expansion plans.
The company announced in April that it planned to raise up to ₦500 billion through a Rights Issue, with any unsubscribed shares potentially offered to other investors.
The capital raise ranks among the largest Rights Issues in Nigeria’s corporate history.
Dangote Sugar had also indicated that its share capital would be increased to accommodate the new shares issued under the offer.
At ₦60 per share, the Rights Issue price represented a 5.51% discount to the company’s market price as of the qualification date.
The strong subscription suggests continued shareholder appetite for Dangote Sugar’s expansion strategy, while the successful completion gives the company almost ₦486 billion in fresh capital to strengthen its financial position and pursue its long-term investment plans.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
