Industrial & Medical Gases Nigeria Plc has launched a N6.39bn rights issue to fund debt repayment and expansion, offering shares at a 20% discount

Industrial & Medical Gases Nigeria Plc has kicked off a N6.39 billion rights issue, aiming to reinforce its market position and accelerate growth initiatives.

Also read: Bamidele Abiodun Champions Free Surgery Outreach for Ogun’s Less Privileged

The company announced that 199,797,458 ordinary shares of 50 kobo each will be offered at N32 per share, on a ratio of two new shares for every five held as of May 21, 2025.

This offer, which represents a 20% discount on the market price of N39.85, will remain open for 28 working days.

Chairman Aminu Ado described the rights issue as a bold step in IMG’s long-term growth strategy, giving shareholders a chance to deepen their investment and participate in the next chapter of the company’s evolution.

Managing Director and CEO Ayodeji Oseni added that the proceeds will be used to repay outstanding loans and fund targeted business development efforts.

“This rights issue is a defining moment in our journey. We’re focused on unlocking growth and driving long-term stakeholder value,” Oseni said.

IMG’s recent financial performance supports this capital raise. According to United Capital’s Gbadebo Adenrele, IMG grew revenue by 38% to N8.3bn in 2024, while profit after tax surged by over 90% to N1.6bn.

Adenrele added that the company is using this opportunity to deleverage its balance sheet, enhance cash flow, and fund capacity expansion.

The transaction is being managed by United Capital Plc as lead issuing house, with Meristem Capital Limited as joint issuing house, Morgan Capital Securities as stockbroker, and Lancelot Registrars as registrar.

Also read: Yobe State Health Insurance Targets 38,000 Vulnerable Women, Children

With this move, Industrial & Medical Gases Nigeria Plc reaffirms its commitment to financial discipline, market expansion, and sustained shareholder value.