Chams Holding Company Plc is set to raise N3.99 billion from the Nigerian capital market through a rights issue. The move is meant to help the company strengthen its capital base and fund its operations.
This was made known in a market bulletin issued by the Nigerian Exchange Limited (NGX) on Monday. Chams has applied for approval and listing of 2,348,030,000 ordinary shares of 50 kobo each at a price of N1.70 per share under its rights issue.
The offer will be made on a basis of one new ordinary share for every two ordinary shares already held by existing shareholders as of the close of business on Monday — which is the qualification date for participating in the Rights Issue.
The Rights Issue is being facilitated by a team of stockbroking firms acting on Chams’ behalf. These firms include Tiddo Securities Limited, Cowry Securities Limited, APT Securities and Funds Limited, Lambeth Capital Limited, and CSL Stockbrokers Limited.
According to the bulletin, Chams is offering these shares to raise additional capital in order to fund its operations and pursue its future plans. The company, a key player in the technology industry in Nigeria, aims to consolidate its financial base and empower its businesses to grow and innovate.
The move comes at a time when Chams Holdings is experiencing a turnaround in its financial performance. The company recently returned to the green zone in 2023 after posting a N20.22 million profit by the close of the financial year. Chams was recognized as one of the firms with the highest capital gains for investors on the Nigerian Exchange in 2023.
The additional capital raised from this Rights Issue will enable Chams to pursue its goals more effectively, implement its strategies, and consolidate its operations in a challenging market environment.
This fund injection is expected to aid Chams in developing its technology platforms, strengthening service delivery, and growing its market share in the industry. Chams, a leading provider of technology solutions in Africa, plays a key role in delivering services in sectors ranging from payments, financial services, education, and health care.
Shareholders participating in the Rights Issue will have the opportunity to increase their holdings at a discount to the current market price of Chams’ shares, strengthening their positions in the future growth of the company.
This move signals Chams’ confidence in its ability to perform strongly in the years to come and underscores its ongoing transformation into a dominant technology service provider in Africa.
