Industrial & Medical Gases Nigeria Plc (IMG) is set to embark on a major capital-raising initiative following shareholder approval of a N249 million dividend, signaling renewed confidence in the company’s growth strategy. The company has officially launched a Rights Issue valued at N6.39 billion, aimed at funding expansion and strengthening its financial position.
The Rights Issue, which was signed over the weekend, offers shareholders the opportunity to acquire 199,797,458 ordinary shares of 50 kobo each, priced at N32 per share. Existing shareholders are entitled to two new shares for every five held as of the qualification date. The offer will remain open for 28 working days, giving investors ample time to participate or renounce their rights.
United Capital Group is serving as Lead Issuing House, with Meristem Capital Limited as Joint Issuing House. Morgan Capital Securities Nigeria Ltd. has been appointed as the designated Stockbroker, while Lancelot Registrars and Investor Relations Limited will act as the Registrar.
Chairman Aminu Ado explained that the Rights Issue is designed to improve liquidity, reduce debt, and strengthen IMG’s balance sheet, while providing shareholders an opportunity to increase their equity stake and participate in the company’s next phase of growth.
Managing Director and CEO Ayodeji Oseni emphasized that the funds raised will be used to repay expansion-related loans and finance key business development projects. He expressed optimism about strong shareholder participation, citing a history of consistent support and the company’s commitment to transparent communication.
Dr. Gbadebo Adenrele, Managing Director of Investment Banking at United Capital Group, noted that the offer, which comes at a 20% discount, is intended to lower financing costs, unlock cash flows, and bolster long-term growth, while reinforcing investor confidence in IMG.
The Rights Issue follows a strong first-half performance, with the company reporting an 18.7% rise in revenue to N4.3 billion for the period ending June 2025. Gas sales accounted for N4.1 billion, or 96.4% of total revenue. Gross profit climbed to N2.2 billion from N1.7 billion in the same period of 2024, despite a cost of sales of N2 billion. Pre-tax profit, however, fell to N726.7 million from N1.7 billion due to increased operating expenses.
IMG’s balance sheet remains robust, with total assets of N14.8 billion and general reserves of N5.7 billion, marking a 1.35% increase. The Rights Issue represents a strategic step to reinforce the company’s financial resilience and support its ongoing expansion across the industrial and medical gas sectors.