Industrial & Medical Gases Nigeria Plc Launches ₦6.39bn Rights Issue

Industrial & Medical Gases Nigeria Plc (IMG) has opened its ₦6.39 billion rights issue to shareholders, marking a major step in its plan to strengthen its financial base and expand operations across Nigeria’s industrial and healthcare gas markets.

The rights issue, which commenced on Monday, August 18, 2025, will remain open for 28 working days. The company is offering 199,797,458 ordinary shares of 50 kobo each at ₦32 per share, on the basis of two new shares for every five already held by shareholders whose names appeared on the register as at the qualification date of May 21, 2025.

Proceeds from the capital raised will be applied towards reducing debt, boosting liquidity, and financing growth initiatives.

In recent years, IMG has expanded its role in Nigeria’s healthcare sector, especially through the supply of oxygen and other medical gases to hospitals, while maintaining a strong presence in the manufacturing, oil and gas, and food and beverage industries.

In a statement, the board described the exercise as crucial to the company’s long-term vision.

“This rights issue is a deliberate step to reinforce our balance sheet, improve our financial flexibility, and ensure IMG remains well-positioned to meet the rising demand for industrial and medical gases across the country,” the company noted.

The decision to embark on the rights issue follows shareholder approval at the company’s Annual General Meeting (AGM) in June 2025, where investors endorsed the plan to raise up to ₦6.5 billion through equity financing. The offer price of ₦32 per share represents a discount of about 20% compared to the company’s market price on the qualification date, providing additional incentive for shareholder participation.

During the offer period, shareholders may either exercise their rights, renounce them, or trade them on the Nigerian Exchange (NGX). Subscription procedures, including the list of receiving agents, are contained in the official offer document.

The results of the exercise, including the level of subscription and allotment, will be announced after the close of the offer and subsequent regulatory approval. Market analysts note that the outcome of the rights issue will be closely monitored, as it could serve as a test of investor confidence in equity financing at a time when several Nigerian companies are returning to the market for fresh capital.