By Atoyebi Nike
Industrial & Medical Gases Nigeria Plc (IMG) has opened a N6.39 billion Rights Issue to existing shareholders as part of its strategy to cut debt, improve liquidity, and fund long-term expansion.
The offer, signed off over the weekend, covers 199,797,458 ordinary shares of 50 Kobo each at N32 per share, allowing shareholders to acquire two new shares for every five held as of the May 21, 2025 qualification date. The subscription window will remain open for 28 working days.
Chairman of IMG, Bayero Ado, described the move as “a crucial milestone” for the company’s growth trajectory.
“This Rights Issue will raise capital, enhance liquidity, and strengthen our balance sheet by reducing debt, while also giving shareholders the chance to increase their equity stake,” he said.
Managing Director and CEO, Ayodeji Oseni, added that the proceeds would be used to repay an outstanding expansion loan and finance targeted business development.
“We remain focused on unlocking future growth opportunities and driving sustained value for stakeholders,” Oseni stated.
United Capital Group, the lead issuing house, explained that the discounted offer price of N32 represents a 20 percent markdown from the market price of N39.85 as of May 21, 2025. Managing Director of Investment Banking, Gbadebo Adenrele, said the initiative would help IMG “deleverage, unlock cash flows, and support long-term growth.”
IMG’s strong financial performance in 2024, where revenue grew by 38 percent to N8.3 billion and profit after tax surged by 90 percent to N1.6 billion, has positioned the company for a positive shareholder response.
