Shareholders Approve IMG’s N6.5bn Rights Issue

Industrial & Medical Gases Nigeria Plc (IMG) has received shareholder approval to raise N6.5 billion through a rights issue, a strategic move aimed at strengthening its capital base, expanding operations, and increasing market penetration.

The approval was secured at an extraordinary general meeting held immediately after the company’s 65th Annual General Meeting (AGM) over the weekend in Lagos. At the AGM, shareholders also approved a dividend payout of N400 million, translating to 80 kobo per share, and endorsed a bonus issue of one new ordinary share of 50 kobo for every 10 ordinary shares held.

Addressing shareholders, Chairman of the Board, Aminu Ado, said the proposed rights issue is central to the company’s broader transformation agenda. According to him, “The IMG board is poised to prioritise capital investments, diversification of markets, production expansion, cost efficiency, and customer-centric innovation.”

Managing Director and Chief Executive Officer, Ayodeji Oseni, provided a strong outlook for the company, citing a significant improvement in financial performance. “Our revenue grew by 38 per cent, from N6.064 billion in 2023 to N8.376 billion in 2024, and profit after tax increased from N850 million to N1.62 billion. Our performance reflects the strength of our strategy, financial discipline, and organisational resilience in a demanding environment,” he said.

Shareholders welcomed the announcement and pledged support for the rights issue. One shareholder, Oladiji Mustapha, expressed appreciation for the company’s progress and acknowledged the pivotal role of General Theophilus Danjuma in stabilising the company. “I commend the board and management for a good result. We should show our appreciation for General Danjuma’s bail-out by taking our rights issue and asking for more,” he said.

The National Chairman of the Progressive Shareholders Association, Boniface Okezie, also supported the rights issue. He described it as a better alternative to bank borrowing and urged shareholders to fully subscribe when the offer is made. “Rather than work for banks through borrowing, the IMG’s proposed rights issue is more beneficial to the company and shareholders. I urge all shareholders to participate fully when the offer is floated,” he stated.

Okezie further commended IMG’s planned relocation to Sagamu, describing it as a forward-thinking decision that would enhance operational efficiency and position the company for long-term growth.

At the AGM, shareholders also re-elected Olawale Oyedele and Adebayo Adeleke as non-executive directors after their retirement by rotation, reaffirming confidence in the board’s direction and leadership.

The meeting, which brought together key stakeholders, highlighted IMG’s commitment to growth, innovation, and shareholder value creation in a challenging economic environment.