Dangote Sugar Refinery Plc (NGX: DANGSUGAR) has applied to the Nigerian Exchange Limited (NGX) for approval to raise fresh capital through a rights issue.
The development was announced in a market bulletin dated April 21, 2026, and signed by Godstime Iwenekhai, Head of the Issuer Regulation Department at NGX Regulation Limited.
The company is seeking to issue 8.10 billion ordinary shares of 50 kobo each at a price of N60.00 per share. The offer is structured on the basis of two (2) new shares for every three (3) existing shares held by shareholders.
The qualification date for the rights issue has been fixed as April 20, 2026. This means only shareholders whose names appeared on the company’s register at the close of business on that date will be eligible to participate in the offer.
The application was submitted through its stockbrokers — Meristem Stockbrokers Limited, Stanbic IBTC Stockbrokers Limited, and Vetiva Securities Limited — for approval and listing on the NGX.
If fully subscribed, the rights issue is expected to raise about N485.9 billion, providing additional funding for the company’s operations and expansion plans.
On Wednesday, DANGSUGAR closed at N66.95 per share on NGX, the rights issue offer price of N60.00 represents a discount of about 10.4 per cent.
This discount makes the offer relatively attractive to existing shareholders, as they can acquire additional shares below the prevailing market value. However, the margin is not particularly wide, suggesting that investor participation will likely depend on confidence in the company’s future earnings and how the market reacts as the offer progresses.
A rights issue allows existing shareholders to buy additional shares in proportion to their current holdings, usually at a fixed price.
This helps companies raise capital while giving current investors the opportunity to maintain their ownership stake.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
