Industrial & Medical Gases Launches N6.39 Billion Rights Issue

Industrial & Medical Gases Nigeria Plc (IMG) has officially opened its N6.39 billion Rights Issue to shareholders, a move aimed at funding the company’s expansion initiatives.

The offer, signed over the weekend, consists of 199,797,458 ordinary shares of 50 kobo each, priced at N32 per share. Shareholders are entitled to two new shares for every five held as of the qualification date.

United Capital Group is serving as Lead Issuing House, with Meristem Capital Limited as Joint Issuing House. Morgan Capital Securities Nigeria Ltd. is the designated Stockbroker, while Lancelot Registrars and Investor Relations Limited will act as Registrar to the offer. The Rights Issue will remain open for 28 working days.

IMG Chairman, Aminu Ado, explained that the capital raise would improve liquidity, reduce debt, and strengthen the balance sheet, while giving shareholders an opportunity to increase their equity stake. Managing Director and CEO, Ayodeji Oseni, noted that the funds would be deployed to repay expansion-related loans and finance new business projects.

Dr. Gbadebo Adenrele, Managing Director of Investment Banking at United Capital Group, highlighted that the pricing at a 20% discount was designed to boost participation and investor confidence.

This offering comes on the back of IMG’s half-year 2025 results, which showed revenue growth of 18.7% to N4.3 billion, driven largely by gas sales. Gross profit rose to N2.2 billion from N1.7 billion in the same period of 2024, despite pre-tax profit declining to N726.7 million from N1.7 billion due to higher operating costs. The company’s balance sheet remained steady, with total assets at N14.8 billion and reserves at N5.7 billion.