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Chams Holding Company Plc Embarks on Rights Issue and Corporate Restructuring

Strategic Insights

— 2 min read

Chams Holding Company Plc, a Nigerian technology-driven services company, is currently conducting a Rights Issue to raise capital from its existing shareholders. The company aims to increase its capital base to enable strategic objectives including investment in acquisition, expansion, and development of product distribution channels. As part of its corporate restructuring, Chams is transitioning from a non-operating financial holding company to a fully operational holding company.

The Rights Issue involves the issuance of 2.348 billion ordinary shares at N1.70 per share, with a total offer size of N3.991 billion. The company's share price has risen by 31.16 percent this year, reaching a 52-week high of N3.65. Chams' 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.

Key Takeaways:

  • Chams Holding Company Plc is conducting a Rights Issue of 2.348 billion ordinary shares at N1.70 per share, with a total offer size of N3.991 billion.
  • The company aims to increase its capital base to enable strategic objectives including investment in acquisition, expansion, and development of product distribution channels.
  • Chams' share price has risen by 31.16 percent this year, reaching a 52-week high of N3.65.
  • 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.
  • Chams recorded a net profit after tax of N391 million, compared to N20 million in 2023 - representing 1,855 percent growth.
  • The company plans to use the net offer proceeds of N3.881 billion (after deducting offer costs of N110.024 million) to build a state-of-the-art card plant (N1.157 billion), roll out mobile money and digital payments solutions (N728.222 million), expand Chams Access Product across Africa (N718.497 million), deploy next-generation switching technology (N439.081 million), and use the remaining N838.246 million for working capital.
  • Chams has four subsidiaries: ChamsSwitch, ChamsMobile, CardCentre, and ChamsAccess, of which the former are Fintech subsidiaries.
  • The company's Board and Management team 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.
  • Chams' entire issued and paid-up share capital is listed on the Nigerian Exchange Limited (NGX), with a market capitalization of N7.983 billion at offer price (pre-offer) and N11.974 billion on completion of the offer.

Statistics:

  • 2.348 billion ordinary shares will be issued at N1.70 per share.
  • Total offer size: N3.991 billion.
  • Chams' share price has risen by 31.16 percent this year.
  • Full-year 2024 revenue: N14.91 billion (a 70.1 percent increase from N9.64 billion in 2023).
  • Gross profit: N4.31 billion (over 134 percent increase).
  • Profit before tax: N856 million.
  • Net profit after tax: N391 million (1,855 percent growth).
  • Net offer proceeds: N3.881 billion (after deducting offer costs of N110.024 million).
  • Offer costs: N110.024 million (2.756 percent of the offer).

Sources:

  • [This Day, August 11, 2025]
  • [Chams Holding Company Plc, Annual Report 2024]
  • [Chams Holding Company Plc, Letter to Shareholders by Demola Aladekomo, Chairman]
  • [ Nigerian Exchange Limited (NGX), Chams Holding Company Plc Listing Details]
  • [Cowry Asset Management Limited, Lead Issuing House]
  • [Lead Capital Plc, Joint Issuing House]
  • [Aluko and Oyebode, Solicitors to Chams Holding Company Plc]

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