IMG rights issue approved by shareholders to raise N6.5bn for expansion, alongside N400m dividend and bonus shares to strengthen growth strategy

IMG rights issue approved by shareholders, paving the way for the company to raise N6.5 billion to strengthen its capital base, expand operations, and deepen its market reach.

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The endorsement was secured over the weekend during an extraordinary general meeting held in Lagos, shortly after the firm’s 65th annual general meeting.

Shareholders also approved a N400 million dividend payout—translating to 80 kobo per share—and a bonus issue of one new 50 kobo ordinary share for every 10 held.

Board Chairman Aminu Ado stated that the rights issue forms part of IMG’s broader transformation agenda aimed at capital investment, product diversification, production growth, cost management, and enhanced customer service.

“The board is committed to strategic capital deployment that drives innovation and sustainability,” Ado said.

Managing Director and CEO Ayodeji Oseni highlighted IMG’s robust financial performance despite economic challenges.

“Our revenue rose by 38 percent—from N6.06 billion in 2023 to N8.38 billion in 2024—while profit after tax nearly doubled from N850 million to N1.62 billion,” Oseni reported.

This move will boost innovation, production, and market presence.

“This result affirms the strength of our strategy and operational discipline.”

Shareholders expressed strong support for the proposed rights issue and praised the company’s leadership. Oladiji Mustapha remarked, “We appreciate the efforts of the board and should honour General Theophilus Danjuma’s bailout support by fully subscribing to the offer.”

Boniface Okezie, National Chairman of the Progressive Shareholders Association, noted that the rights issue offers more value to shareholders than external borrowing.

“Raising funds through shareholders rather than banks will keep the business financially sound and independent,” he said, encouraging full participation.

He also applauded IMG’s planned relocation to Sagamu, Ogun State, describing it as a strategic move that would drive efficiency and scale production.

During the meeting, shareholders re-elected non-executive directors Olawale Oyedele and Adebayo Adeleke, reaffirming confidence in the board’s stability and leadership direction.

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With IMG rights issue approved and financial results strengthening shareholder trust, the company appears poised for a new phase of growth and innovation.