IMG Begins N6.39bn Rights Issue To Drive Growth

Industrial & Medical Gases Nigeria (IMG) Plc has commenced a rights issue valued at N6.39 billion. The issue aims to reinforce its market presence and fund strategic expansion initiatives.

After signing all necessary agreements, the rights issue is now open to IMG shareholders. The offer comprises 199.797 million ordinary shares of 50 kobo each at N32 per share, allowing existing shareholders to acquire two new Ordinary Shares for every five shares held as of the qualification date.

The chairman of IMG, Aminu Ado, said the rights issue represented  a major step in the company’s long-term growth strategy.

“Today marks a crucial milestone as we officially commence our Rights Issue to raise capital, enhance liquidity, and strengthen our balance sheet by reducing existing debt. This initiative allows our valued shareholders to increase their equity stake and contribute to IMG’s next growth phase. The offer will be open for 28 working days, during which shareholders may either accept or renounce their rights,” he stated.

The managing director and CEO of IMG, Ayodeji Oseni, emphasised the strategic use of the funds, saying that “this rights issue is a defining moment in our company’s journey. The proceeds will be utilised to repay an outstanding loan secured for expansion purposes and to fund targeted business development initiatives. We deeply value our shareholders’ ongoing support and trust and are committed to transparent communication throughout this process.

“We are confident of a strong response, as our shareholders have consistently demonstrated belief in our vision. We remain focused on unlocking future growth opportunities and driving sustained value for all stakeholders.”

The managing director of investment Banking at United Capital Group, the lead issuing house, Dr. Gbadebo Adenrele, explained that the Company was prioritising efforts to reduce its financing burden, strengthen its balance sheet, and support long-term growth by deleveraging and unlocking cash flows for capacity expansion and other operational needs.

“To ensure the success of the rights issue, IMG has implemented targeted strategies focused on pricing and investor engagement. Following a strong Growth performance in the 2024 financial year, with revenue rising by 38 per cent to N8.3 billion and profit after tax surging by over 90 per cent to N1.6 billion, the Company has built significant momentum heading into the rights issue.

“This momentum is further reinforced by an attractive offer price of N32.00 per share, representing a 20 per cent discount to the market price of N39.85 as of the qualification date, May 21, 2025. IMG is also emphasising transparency and active shareholder participation to strengthen investor confidence and drive strong uptake,” stated Adenrele.