IMG Nigeria Announces ₦6.5 Billion Rights Issue and Dividend Payout

Industrial and Medical Gases Nigeria Plc (IMG) has unveiled plans to raise ₦6.5 billion through a rights issue while approving dividend payments to shareholders for the 2023 financial year.

The company disclosed this in a corporate filing with the Nigerian Exchange Group. Under the proposed rights issue, IMG will offer 650 million ordinary shares at ₦10 per share, representing a 30% discount to its current market price of ₦14.50. The subscription window is scheduled to open on [Start Date] and close on [End Date] 2024. The capital raise aims to expand the company’s gas production facilities and bolster working capital.

In a parallel move, the Board of Directors approved a final dividend of ₦0.50 per share, bringing the total dividend for the 2023 fiscal year to ₦1.00 per share, including the earlier interim dividend. Shareholders on the register as of [Record Date] will receive payments on [Dividend Payment Date] 2024.

Managing Director and CEO, Mr. Ayodeji Oseni, stated, “This rights issue aligns with our growth strategy while rewarding our shareholders. The additional capital will enhance our production capacity to meet rising demand in Nigeria’s healthcare and industrial sectors.”

IMG reported a 22% year-on-year revenue increase to ₦18.7 billion for the 2023 financial year, with profit before tax rising by 15% to ₦2.3 billion. The company’s total assets also grew by 18% to ₦25.1 billion, reflecting its continued expansion.

The rights issue, which grants shareholders one new share for every five held, will be managed by [Lead Issuing House Name]. Market analysts have responded positively, with [Brokerage Firm Name] maintaining a “Buy” rating, citing IMG’s balanced approach to growth and shareholder returns.

The announcement comes amid increasing demand for industrial and medical gases in Nigeria, driven by manufacturing sector growth and government policies promoting local production. IMG’s strategic moves position it to capitalize on these opportunities while reinforcing investor confidence.