FRI AUG 14 2026-theGBJournal| Dangote Sugar Refinery Plc’s N485.9 billion rights issue was fully taken up, with valid applications exceeding the shares on offer by 2.6%, underscoring strong shareholder demand for the company’s capital raising, according the integrated sugar company said on Thursday.
Dangote Sugar offered 8.098 billion ordinary shares at N60 each, on the basis of two new shares for every three held by shareholders as of April 20, 2026.
At the close of the acceptance period on June 24, valid applications were received for 8.309 billion shares worth N498.57 billion, against the N485.88 billion value of the offer.
The transaction was led by Vetiva Capital Management Limited, with Stanbic IBTC Capital, Coronation Merchant Bank, FirstCap, Meristem Capital, Quantum Zenith Capital and United Capital acting as joint issuing houses.
The 102.6% subscription rate means Dangote Sugar secured more than the full amount it sought to raise, although the level of excess demand was relatively modest.
In practical terms, shareholders applied for about N12.69 billion more shares than were available.
The more significant signal is that the company achieved full subscription of the core rights offer, allowing it to raise the entire targeted N485.9 billion before considering the allocation of excess or renounced rights.
The result also shows that demand extended beyond shareholders simply exercising their existing entitlements.
Some investors sought additional shares after taking up their rights, with 8,241 shareholders applying for 1.147 billion additional shares valued at N68.82 billion.
Dangote Sugar said 835.4 million additional shares were allotted, representing 78.85% of the additional shares requested.
A total of 935.4 million shares were renounced, including fully and partially renounced rights, creating room for the additional-share allocation. The company also recorded 122 transactions involving 77.18 million traded rights during the acceptance period.
We note that the successful outcome removes execution risk around the rights issue and provides Dangote Sugar with the full proceeds targeted from the transaction.
“The fact that shareholders not only exercised their entitlements but also sought additional shares suggests that investor appetite for the company remained sufficiently strong to absorb the enlarged demand,” a Dangote Sugar watcher in Lagos tells the G&B Journal.
The allocation basis and announcement were cleared by the Securities and Exchange Commission, while the registrar, Veritas Registrars Limited, is to credit successful applicants’ CSCS accounts by August 14, 2026 and return surplus subscription monies by the same date.
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