Chams Holding Company Plc is currently in the market raising money from its existing shareholders through a Rights Issue of 2.348billion ordinary shares at N1.70 per share. The offer size is N3.991billion.
The Rights being offered are tradable on the floor of the Nigerian Exchange Limited (NGX) for the duration of the acceptance period of the Issue. As at close of trading on August 11, the share price of Chams Holdings was N2.61, an indication that it has risen this year by 31.16 percent. The stock had reached a 52-week high of N3.65 and a corresponding week low of N1.85.
The Rights Issue is on the basis of 1 new ordinary share for every 2 ordinary shares held as at the close of business on Monday, June 16, 2025. The acceptance list / trading in rights opened on Friday, August 8 while the rights issue is scheduled to close on Friday, September 12, 2025.
The net offer proceeds estimated at N3.881billion (after deducting the offer costs of N110.024million representing 2.756 percent of the offer) will be applied as follows: Building a state-of-the-art card plant (N1.157billion, representing 29 percent of the gross proceeds). The time for completion is 24 months. The company will use N728.222million or 21 percent of the gross proceeds to rolling out mobile money and digital payments solutions.
This will be done in 12 months. Likewise, N718.497million or 18 percent of the gross proceed will be used for Chams Access Product expansion across Africa, a project expected to be completed in 12 months. Also, in 12 months Chams Holdings will use N439.081million or 11 percent of the offer gross proceed to deploy next generation switching technology, while the remaining N838.246 million or 21 percent of the offer gross proceed will be used as working capital.
Chams Group has four subsidiaries: ChamsSwitch, ChamsMobile, CardCentre and Chams Access, of which the former are Fintech subsidiaries. Cham Switch focuses primarily on remittances, card payment processing and financial services, whilst Chams Mobile provides Mobile money accounts supported with a country-wide financial services agent infrastructure. ChamsAccess manages a range of equipment supply and innovative digital solutions, whilst Card Centre personalises cards and other products, primarily for banks.
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At the 41st Annual General Meeting (AGM) of Chams Holding Company Plc held virtually on Thursday July 24, 2025 the shareholders resolved among others that the Company’s name be changed from Chams Holding Company Plc to Chams Corporation Plc and substituting the altered name in Clause 1 of the Company’s Memorandum of Association and Clause 1 of the Articles of Association.
Also, the shareholders among others authorised that the Board undertakes a corporate restructuring exercise, transitioning from a non-operating financial holding company to a fully operational holding company, subject to the prior approval of the Central Bank of Nigeria (CBN) and any other relevant regulatory authorities.
Further to the corporate restructuring, the Board was authorised to undertake such divestments and/or reduction in its equity holdings in any of its subsidiaries, as may be deemed necessary or expedient by the Directors, in order to give full effect to the corporate restructuring exercise.
The company’s full-year 2024 revenue surged to N14.91 billion, a 70.1 percent increase from N9.64 billion in 2023. Gross profit rose by over 134 percent to N4.31 billion, while profit before tax stood at N856 million, a more than three-fold increase from N248.5 million in the previous year.
Chams recorded a net profit after tax of N391 million, compared to N20 million in 2023 — representing 1,855 percent growth. This was driven by strong topline growth, enhanced cost discipline, digital innovation, and the successful execution of new contracts across digital identity, fintech, and enterprise solutions.
Basic earnings per share rose sharply, reflecting the Group’s improved earnings quality and shareholder value creation.
“Chams’ 2024 performance marks a significant departure from its historical pattern of losses, consolidating the turnaround momentum first signalled in 2023. It underscores the company’s resilience, adaptability, and commitment to delivering long-term value through technology-driven services, sound governance, and efficient capital management,” said Demola Aladekomo, chairman, Chams Holding Company in a letter to shareholders.
“Due to the advances in technology, the rapid evolution of the business of identity management, payment collection, and transactional systems solutions in Nigeria and changes in the operating landscape, it is imperative that Chams remains agile, adaptable, and properly positioned to respond appropriately to developments, whilst remaining a competitive and forward-looking institution. To ensure that Chams is well positioned to navigate possible headwinds in the economy and take advantage of emerging business opportunities, the Company’s Management team seeks to undertake landmark projects and business initiatives that will redefine Chams’ business structure, diversify its earnings base and ultimately grow its market share in the real sector of the economy,” Aladekomo told shareholders.
“The Board and Management of Chams are optimistic that in the absence of unforeseen contingencies, Chams will continue to record significant growth and improvement in its operations over the coming years and be following the relevant regulatory requirements after the closure of this Rights Issue. “Consequently, I strongly believe that the future of Chams remains very bright and filled with opportunities that we will harness.
“I believe this Rights Issue will create a win-win for the Company, the investors, the shareholders, and other stakeholders in translating this investment into significant economic benefits and enhanced shareholder value. I, therefore, encourage you to carefully consider the opportunity to exercise your rights in full, to reaffirm your support for our Chams, and as a declaration of your continued confidence in its growth potential,” Aladekomo further said.
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Chams Holding Company’s entire issued and paid-up share capital is listed on the Nigerian Exchange Limited (NGX). An application has been made by the company to the Board of the NGX for the admission of the Rights Issue shares to the Daily Official List. Chams Holdings market capitalisation at offer price (pre-offer) is N7.983billion, while on completion of the offer, assuming the offer is fully subscribed to, the company will have a market capitalisation of N11.974billion.
The Rights Issue is being undertaken to increase Chams Holding Company’s capital base to enable the Company to achieve its strategic objectives including investment in acquisition, expansion and development of product distribution channels.
As at May 31, 2025, the company had a total of N2.821billion outstanding debt issued and borrowed funds which includes: Bank of Industry (BOI) (N321.264million), bank loan (N1.500billion), and over drafts (N1billion).
On claims and litigation, the opinion of the Aluko & Oyebode, the Solicitors to the Company in connection with the registration of the Offer shows that the company in the ordinary course of business is presently involved in five suits, out of which two were instituted against the Rights Issuer, while the other three cases were instituted by the Company.
The total amount claimed against the Issuer, including general damages in the two cases instituted against it is N165.003million and $1.1million. In respect of the three cases instituted by the Rights Issuer, two of the cases do not specify a claim amount or general damages. In the third case, the Issuer is claiming general damages in the sum of N80billion while there is no monetary claim in the suits instituted by the Company.
“Based on our review of the facts of the cases to which the Company is involved, we are of the opinion that the case would not adversely affect the transaction,” the solicitors to the company noted.
The Lead Issuing House is Cowry Asset Management Limited, while the joint issuing houses are APT Securities and Fund Limited, Finmal Finance Services Limited, Capital Express Securities Limited, Emerging Africa Capital Advisory Limited, Tiddo Securities Limited, Cedrus Capital Limited, Apel Asset Limited, Lead Capital Plc, and FSL Capital Limited.
While the Rights Issue goes on, Chams Holding Company is also concurrently offering 1.955billion ordinary shares at N1.87 per share by way of Private Placement.
Chams is a proudly Nigerian company, having been in business for over 39 years, and listed on the Nigerian Exchange Limited (NGX) since 2008. Although Chams is well known for having championed identity management and other major initiatives in Nigeria, including BVN and INEC projects over the years, Chams HoldCo Plc has migrated into delivering Fintech and other innovative digital solutions. The Group is now very focused on delivering innovative digital services across a broad range of private sector consumer and business segments, with a particular focus on the consumer segment.