Dangote Sugar Refinery is undertaking one of the most significant fundraising operations in its history in order to support the expansion of its activities and strengthen local sugar production in Nigeria. The agro-industrial group has launched a rights issue on the Nigerian stock exchange, covering more than 8 billion new shares, for a total estimated amount of approximately USD 353 million (FCFA 199.3 billion).
Through this operation, existing shareholders have priority to purchase new shares at a fixed price of 60 naira (USD 0.044). This mechanism allows them to maintain their stake in the capital should they choose to participate in the fundraising, whilst Dangote Sugar seeks to mobilise resources to finance the expansion of its production capacity and strengthen its position in an economic environment marked by naira volatility and rising import costs. The group intends to allocate a significant portion of the funds raised to its agricultural development programme known as "Sugar for Nigeria", designed to increase local sugarcane cultivation and progressively reduce raw sugar imports. The company aims to bring its production capacity to approximately 1.5 million tonnes of sugar per year through the development of vast plantations and the expansion of its industrial infrastructure.
(Source: FGI Research & Studies – Sika Finance)