Industrial & Medical Gases Nigeria Plc (IMG) Charts Ambitious Growth Trajectory with N6.5 Billion Rights Issue and Strategic Expansion Plans
Industrial & Medical Gases Nigeria Plc (IMG) is embarking on a significant growth trajectory, fueled by a recently approved N6.5 billion rights issue. This strategic move, endorsed by shareholders at an Extraordinary General Meeting (EGM), aims to bolster the company’s capital base, facilitate operational expansion, and enhance market penetration. The rights issue is a cornerstone of IMG’s transformational agenda, focused on capital investments, market diversification, production expansion, cost optimization, and customer-centric innovation. This initiative signals a proactive approach to capitalize on emerging opportunities and solidify IMG’s position within the industrial and medical gases sector.
The EGM, held in conjunction with the company’s 65th Annual General Meeting (AGM), also witnessed the approval of a N400 million dividend payout, equivalent to 80 kobo per share, and a bonus issue of one new ordinary share for every ten held. These actions demonstrate IMG’s commitment to rewarding shareholders while simultaneously strengthening its equity base. The dividend payout reflects the company’s robust financial performance despite challenging economic conditions, while the bonus issue aims to enhance share liquidity and broaden ownership. These measures underscore IMG’s commitment to delivering value to its shareholders and fostering confidence in its future prospects.
IMG’s financial performance for the reported period demonstrates remarkable resilience and growth. Revenue surged by 38% to N8.376 billion, exceeding the N6.064 billion recorded in the previous year. Profit after tax also witnessed a substantial increase, rising from N850 million to N1.62 billion. This impressive performance is attributed to a combination of strategic initiatives, financial discipline, and organizational agility, enabling IMG to navigate the complexities of a demanding economic environment. The company’s ability to generate substantial growth in both revenue and profitability highlights the effectiveness of its business model and its strong market position.
Shareholders expressed strong support for the board’s strategic direction and the proposed rights issue. They commended the management for delivering commendable results despite prevailing economic headwinds. The rights issue was viewed as a prudent approach to strengthen the company’s financial foundation and fuel its growth ambitions, in contrast to relying on debt financing. Shareholders recognized the long-term benefits of the rights issue and urged widespread participation when the offer is launched. This unanimous support reflects the shareholders’ confidence in the company’s leadership and their belief in the long-term value creation potential of the proposed strategic initiatives.
The relocation of IMG’s operations to Sagamu is another key element of the company’s growth strategy. This move is anticipated to enhance production efficiency, streamline operations, and position IMG for sustained long-term growth. The relocation reflects a commitment to optimizing operational processes and leveraging strategic geographical advantages. It is expected to contribute to cost savings, improved logistics, and enhanced access to key markets, thereby strengthening IMG’s competitive position. The shareholders’ endorsement of the relocation plan further underscores their confidence in the board’s strategic vision.
The reelection of two non-executive directors, Olawale Oyedele and Adebayo Adeleke, further reinforces the stability and direction of IMG’s board. Their reappointment signifies the shareholders’ confidence in their experience, expertise, and contribution to the company’s success. This continuity in leadership provides a solid foundation for implementing IMG’s strategic agenda and navigating the challenges and opportunities ahead. The combination of a robust financial performance, a clear strategic direction, and a supportive shareholder base positions IMG for continued growth and success in the industrial and medical gases sector.
