By Chinwendu Obienyi
Industrial & Medical Gases Nigeria Plc (IMG) has opened a N6.39 billion rights issue as part of its strategic push to reduce debt and fuel long-term expansion.
The offer, which commenced following the signing of final agreements over the weekend, comprises 199.8 million ordinary shares of 50 kobo each, priced at N32 per share. Existing shareholders are eligible to purchase two new shares for every five held as of the May 21, 2025 qualification date. The issue will remain open for 28 working days.
In a statement, IMG Chairman Aminu Ado described the capital raise as a pivotal component of the company’s growth agenda, aiming to strengthen its balance sheet and support shareholder value creation.
“This Rights Issue marks a significant milestone in our company’s journey,” Ado said. “It will enable us to reduce existing debt, enhance liquidity, and position IMG for sustainable growth. Shareholders now have the opportunity to deepen their stake in the company’s future.”
IMG’s Managing Director and CEO, Ayodeji Oseni, said the company intends to channel the proceeds toward repaying a previously secured expansion loan and funding new business development initiatives.
“We are committed to prudent capital allocation,” Oseni said. “This Rights Issue is not only about strengthening our financial foundation but also about investing in the future. We believe the timing is right, and we are confident in a strong response from our shareholders, who have consistently demonstrated belief in our long-term vision.”
According to Oseni, the company remains focused on unlocking new market opportunities while maintaining operational efficiency and transparency throughout the capital raise process.
IMG, a leading player in Nigeria’s industrial gases and medical oxygen market, recorded a 38 per cent increase in revenue to N8.3 billion in the 2024 financial year. Profit after tax surged by over 90 per cent to N1.6 billion, reflecting improved demand and operational scale.
Lead Issuing House United Capital Plc said the Rights Issue is part of a broader effort to deleverage the company’s balance sheet, free up cash flow, and drive capacity expansion. Dr. Gbadebo Adenrele, Managing Director, Investment Banking at United Capital, said the offer structure and pricing were carefully designed to attract investor participation.
The offer price of N32 per share represents a 20 per cent discount to the market price of N39.85 as at the qualification date, which should appeal strongly to shareholders,” Adenrele said. “IMG is coming into this offer on the back of strong earnings momentum and a clear commitment to transparency and shareholder engagement.”
Other parties to the transaction include Meristem Capital Limited as Joint Issuing House, Morgan Capital Securities Ltd. as Stockbroker, and Lancelot Registrars and Investor Relations Ltd. as Registrar.
The Rights Issue is seen as a crucial component of IMG’s broader strategic roadmap, positioning the company to capitalize on Nigeria’s growing demand for industrial and medical gases amid continued infrastructure development and healthcare investment.
Leave a comment