Industrial & Medical Gases Launches N6.39bn Rights Issue to Fund Expansion

Industrial & Medical Gases Nigeria Plc (IMG) has announced the commencement of a N6.39 billion rights issue designed to strengthen its market position, support expansion projects, and improve overall financial performance.

The offer comprises 199,797,458 ordinary shares of 50 kobo each at N32 per share, allotted on the basis of two new ordinary shares for every five held as of the qualification date. The subscription period will run for 28 working days, during which shareholders may either accept or renounce their rights.

Speaking at the signing ceremony in Lagos, the Chairman of IMG, Aminu Ado, described the rights issue as a key milestone in the company’s long-term growth strategy. He said the initiative gives shareholders an opportunity to increase their stake while directly contributing to the company’s future.

Managing Director and Chief Executive Officer, Ayodeji Oseni, explained that proceeds from the rights issue would be used to repay an outstanding expansion loan and fund targeted business development initiatives. “This rights issue represents a defining moment in our journey. We remain committed to unlocking new opportunities, strengthening our operations, and creating sustainable value for stakeholders,” he stated.

Gbadebo Adenrele, Managing Director of Investment Banking at United Capital Group, the lead issuing house, emphasized that the transaction is structured to help the company deleverage, strengthen its balance sheet, and generate stronger cash flows for capacity expansion and operational growth. He noted that IMG had posted impressive results in the 2024 financial year, with revenue rising 38 percent to N8.3 billion and profit after tax jumping more than 90 percent to N1.6 billion.

The offer was priced at N32 per share, representing a 20 percent discount to the N39.85 market price as of May 21, 2025, the qualification date. Other professional parties to the transaction include Meristem Capital Limited as joint issuing house, Morgan Capital Securities Nigeria Limited as stockbroker, and Lancelot Registrars and Investor Relations Limited as registrar.