Industrial & Medical Gases Nigeria Plc
(IMG) has officially launched its ?6.39 billion Rights
Issue, offering shareholders an opportunity to increase their equity stake
while supporting the company’s next phase of growth.
The Rights Issue, signed over the weekend, comprises 199,797,458
ordinary shares of 50 kobo each, priced at ?32 per share. Eligible
shareholders are entitled to purchase two new ordinary shares for every five
held as of the qualification date.
The offer, which will remain open for 28 working
days, is being managed by United Capital Group as Lead Issuing
House, alongside Meristem Capital Limited as Joint Issuing House. Morgan
Capital Securities Nigeria Ltd. is the designated Stockbroker, while Lancelot
Registrars and Investor Relations Limited serves as Registrar.
Comments from Executives
IMG Chairman, Aminu Ado, said the capital raise
will boost liquidity, reduce debt, and strengthen the company’s balance sheet.
“This Rights Issue provides our shareholders the
chance to increase their stake in IMG while helping us execute strategic
expansion initiatives,” Ado noted.
Managing Director/CEO, Ayodeji Oseni, explained
that proceeds from the offer would be channeled towards repaying
expansion-related loans and funding business development projects. He expressed
confidence in strong shareholder participation, citing their consistent support
and the company’s transparent communication culture.
Also speaking, Dr. Gbadebo Adenrele, Managing
Director of Investment Banking at United Capital Group, said the offer was
attractively priced at a 20% discount to encourage uptake and investor
confidence.
“This capital raise will reduce financing costs,
unlock cash flows, and support IMG’s long-term growth trajectory,” Adenrele
stated.
H1 2025 Performance
The Rights Issue follows a positive first-half
performance by IMG. For the period January–June 2025, the company
reported an 18.7% increase in revenue to ?4.3 billion, driven largely by
gas sales of ?4.1 billion (96.4% of total revenue).
Gross profit rose to ?2.2 billion, compared to
?1.7 billion in the same period of 2024. However, pre-tax profit declined to
?726.7 million from ?1.7 billion, largely due to higher operating costs.
IMG’s balance sheet remained stable with total
assets of ?14.8 billion and general reserves of ?5.7 billion,
reflecting a 1.35% growth.
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