Industrial & Medical Gases Nigeria Plc has launched a N6.39bn rights issue to reinforce its market presence and fund expansion initiatives.

In a statement made available to our correspondent on Monday, the company said the offer comprises 199,797,458 ordinary shares of 50 kobo each at N32 per share, on the basis of two new ordinary shares for every five shares held as of the qualification date.

The Chairman of IMG, Aminu Ado, described the rights issue as a significant step in the company’s long-term growth strategy.

He said, “This initiative provides our valued shareholders with an opportunity to increase their equity stake and contribute to IMG’s next phase of growth. The offer will be open for a period of 28 working days, during which shareholders may either accept or renounce their rights.”

The Managing Director and Chief Executive Officer, Ayodeji Oseni, explained that the proceeds from the offer would be used to repay an outstanding loan secured for expansion purposes and to fund targeted business development initiatives. “This rights issue is a defining moment in our company’s journey. We remain focused on unlocking future growth opportunities and driving sustained value for all stakeholders,” Oseni said.

It added that the Managing Director, Investment Banking at United Capital Group, the lead issuing house, Gbadebo Adenrele, noted that the company was prioritising efforts to deleverage, strengthen its balance sheet, and unlock cash flows for capacity expansion and other operational needs.

According to him, IMG delivered strong financial performance in the 2024 financial year, with revenue rising 38 per cent to N8.3bn and profit after tax surging over 90 per cent to N1.6bn. He added that the rights issue was priced at N32 per share, representing a 20 per cent discount to the market price of N39.85 as of the qualification date of May 21, 2025.

Other parties to the issue include Meristem Capital Limited as joint issuing house, Morgan Capital Securities Nigeria Limited as stockbroker, and Lancelot Registrars and Investor Relations Limited as registrar.