Rights Issue to Strengthen Financial Position
Chams Holding Company Plc has unveiled plans to raise approximately ₦3.99 billion from the Nigerian capital market through a rights issue, a move aimed at bolstering its capital base and supporting its operational expansion. The announcement was confirmed in a market bulletin released by the Nigerian Exchange Limited (NGX) on Monday.
As part of the capital raise, Chams Holding has submitted an application for the approval and listing of 2,348,030,000 ordinary shares, each valued at 50 kobo, to be sold at a rights price of ₦1.70 per share. The offer will be made on the basis of one new share for every two shares held by existing shareholders as of the qualification date, which was Monday.
Offer Structure and Advisory Team
The rights issue is being coordinated by five stockbroking firms acting as issuing agents and financial advisers to the company. These include:
- Tiddo Securities Limited
- Cowry Securities Limited
- APT Securities and Funds Limited
- Lambeth Capital Limited
- CSL Stockbrokers Limited
This collaborative effort is expected to facilitate a smooth and well-subscribed issuance process, providing current shareholders an opportunity to increase their stake in the company at a strategic time.
Return to Profitability Bolsters Market Confidence
Chams Holding Plc, which was one of the top performers in terms of capital gains on the NGX in 2023, has reported a return to profitability, recording a net profit of ₦20.22 million by the end of the year. The turnaround reinforces investor confidence in the company’s medium-term growth trajectory and underpins the rationale behind the new capital injection.
Strategic Outlook
The proceeds from the rights issue are expected to be used to reinforce the company’s balance sheet, fund expansion initiatives, and enhance its competitiveness in Nigeria’s evolving technology and identity management sectors. As one of the pioneers in Nigeria's ICT space, Chams Holding is seeking to consolidate its gains and position itself for long-term sustainability.
With market sentiment improving and investor interest rekindled, the rights issue could mark a pivotal step in the company’s next growth phase, enabling it to capitalize on emerging opportunities across the digital services landscape.