Industrial & Medical Gases Nigeria Plc (IMG) has announced that it has officially opened its proposed Rights Issue valued at N6.39 billion.

The company said the offer, signed over the weekend, is now available to shareholders and will be used to fund expansion initiatives in the company.

According to the IMG, the offer consists of 199,797,458 ordinary shares of 50 kobo each, priced at N32 per share.

It also stated that the Rights Issue allows existing shareholders to acquire two new ordinary shares for every five held as of the qualification date.

According to the company’s chairman, the Rights Issue will remain open for 28 working days, during which shareholders may either accept or renounce their rights.

As stated by IMG Chairman Aminu Ado, the capital raise is intended to improve liquidity, reduce debt, and strengthen the balance sheet, while giving shareholders the opportunity to increase their equity stake and support the company’s next phase of growth.

Echoing this view, Managing Director and CEO Ayodeji Oseni said the proceeds would be used to repay expansion-related loans and fund business development projects.

He added that the company expects strong shareholder participation, noting their consistent support and the firm’s commitment to transparent communication.

Dr. Gbadebo Adenrele, Managing Director of Investment Banking at United Capital Group, the Lead Issuing House, said the Rights Issue is aimed at reducing financing costs, unlocking cash flows, and supporting IMG’s long-term growth.

He noted that the offer, priced at N32 per share, represents a 20% discount and is expected to encourage uptake and strengthen investor confidence.

This follows a first-half performance in which the company reported higher sales, with revenue of N4.3 billion.

In its report for the period spanning January to June 2025, Industrial & Medical Gases Nigeria Plc (IMG) recorded an 18.7% increase in revenue to N4.3 billion.

Despite reporting a cost of sales of N2 billion, gross profit surged to N2.2 billion, compared with N1.7 billion in the same period of 2024.

However, pre-tax profit decreased to N726.7 million from N1.7 billion, mainly due to operating costs.

The balance sheet remained stable, with total assets of N14.8 billion and general reserves of N5.7 billion, up 1.35%.