About Chams Holding Company Plc
Chams Holding Company Plc is a Nigerian technology-driven group company with over 39 years of experience in delivering innovative solutions in identity management and transaction payments.
Chams HoldCo Plc, founded in 1985, began as a computer maintenance and services company before evolving to provide a wide range of services, including card issuance and switching, Biometric and identity management solutions, Access control and management systems, Financial cards and payment solutions, and Human resource and payroll system solutions. It does this through its four subsidiaries: ChamSwitch Limited, ChamsAccess Limited, ChamsMobile Limited, and CardCentre Limited.
Chams, a proudly Nigerian-owned company, has weathered the volatile and highly regulated economic environment. Chams Holding Company Plc’s 2024 financial results confirmed a remarkable year of transformation and profitability. The company’s full-year revenue surged to ₦14.91 billion, a 70.1% increase from ₦9.64 billion in 2023. Gross profit rose by over 134% to ₦4.31 billion, while profit before tax stood at ₦856 million, a more than three-fold increase from ₦248.5 million in the previous year. Chams recorded a net profit after tax of ₦391 million, compared to ₦20 million in 2023, representing a 1855% 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 HoldCo Selected Achievements of Subsidiaries
ChamsAccess Limited has secured deals worth over NGN900 million for the supply of currency counting and sorting machines to First Bank and introduced a new strapping machine product line valued at ₦100 million.
The subsidiary also developed PenCentral, a reconciliation solution for the pension industry, through which over NGN13 billion has been remitted seamlessly.
ChamsMobile Limited, licensed by the Central Bank of Nigeria for Mobile Money and Agency Banking services, now delivers digital solutions including KEGOW, VOTA (e-voting), and I’M ALIVE (pensioner verification) to support financial inclusion and service efficiency.
ChamSwitch Limited continues to strengthen its role as a core transaction switch, facilitating payments, utility bill services, and USSD transactions across institutions and underserved markets.
Summary Of The Right Issue
Please see below the summary of the right issue.
How Rights Issues Work
Understanding Rights Issues in the Nigerian Stock Market. A rights issue is a capital-raising mechanism where a company offers existing shareholders the opportunity to purchase additional shares at a discounted price, proportional to their current holdings. This differs from public offerings, as it's exclusive to current investors, helping maintain ownership proportions while injecting fresh capital for expansion, debt reduction, or acquisitions. In Nigeria, rights issues are regulated by the Securities and Exchange Commission (SEC) and executed through the NGX. Here's how they typically work:
1. Announcement and Qualification Date:
The company announces the issue, shareholders receive rights to buy additional shares in proportion to their current holdings, say, a ratio of 1:2.
2. Provisional Allotment:
Eligible shareholders receive a provisional allotment letter detailing their entitled shares. Rights are tradable on the NGX during the offer period, allowing shareholders to sell if they don't wish to subscribe.
3. Subscription Process:
Shareholders can accept (buy the shares), renounce (sell rights), or partially subscribe. Payment is made via bank draft or electronic transfer to the registrar.
4. Offer Period:
The issue opens and closes on specified dates. Unsubscribed shares may be offered to other investors or placed privately.
Benefits and Risks:
- Pros: include discounted pricing and maintaining stake dilution prevention.
- Cons: If many shareholders abstain, it could dilute holdings or signal weak confidence.
Rights are often priced below market value, making them attractive for value investors. In Nigeria's context, rights issues have been popular for banks and tech firms during recapitalisation drives, fostering investor loyalty while complying with regulatory capital requirements.
The Chams Holding PLC 2025 Rights Issue
Details and Opportunity Analysis: Chams HoldCo's ongoing rights issue, which opened on August 8, 2025, and closes on September 12, 2025, is part of a ₦7.65 billion hybrid capital raise, including a ₦3.99 billion rights component and a private placement. The rights offer 2,348,030,000 ordinary shares at ₦1.70 each on a 1:2 basis (one new share for every two held as of the qualification date, June 16, 2025). This pricing represents a discount to the current market price of ₦2.96, potentially offering immediate value. The funds will fuel expansion in digital payments and fintech across Africa, enhancing platforms like ChamsSwitch and ChamsMobile amid rising mobile money adoption.
Opportunity Analysis
Why This Rights Issue May Appeal:
- Discounted Entry Price: At ₦1.70 per share, it may present a bargain compared to long-term growth potential. At ₦1.70, the issue price is about 42% below the August 14 market price, suggesting upside potential if the stock appreciates post-issue. With a P/E of 18.77 and EPS of ₦0.12 (TTM), Chams appears undervalued compared to fintech peers.
- Growth Prospects: Nigeria's fintech market is projected to grow exponentially, driven by CBN policies on a cashless economy and digital IDs. Chams' 42% revenue growth in 2024 and Q1 2025's ₦3.87 billion revenue indicate strong momentum. Investments in AI and blockchain could position it as a leader, with analysts noting long-term value despite short-term cost pressures.
- Risks: Economic volatility, competition from global players like Flutterwave, and potential dilution if uptake is low. However, Chams' established moat in government contracts mitigates this. Overall, this rights issue is a strategic bet for growth-oriented investors, with potential returns from capital appreciation and dividends.
Potential and Prospects of Investing in Chams Holding
Investing in Chams HoldCo offers exposure to high-growth sectors like fintech and digital identity, where Africa leads global trends. Prospects include:
- Market Leadership: As Nigeria's pioneer in e-payments and ID solutions, Chams benefits from partnerships with banks and government agencies, ensuring steady revenue streams.
- Financial Trajectory: From ₦14.93 billion revenue in 2024 to projected higher figures in 2025, driven by 218% profit growth. Q2 2025 showed an operating profit of ₦266 million, signalling recovery.
- Expansion Opportunities: The capital raise targets African fintech dominance, potentially boosting market cap from ₦15.22 billion. With improving investor sentiment (18% stock rise in Q2 2025), long-term holders could see significant gains.
- Broader Impact: In a continent where digital inclusion is key, Chams' solutions address real needs, offering ethical investment appeal.
How to Invest in the Chams Holding Rights Issue
To participate:
- Eligibility Check: Confirm shareholding as of June 16, 2025, via your stockbroker or CSCS account.
- Receive Allotment: Expect a rights circular and provisional allotment from the registrar.
- Subscribe: Complete the acceptance form, pay ₦1.70 per share plus fees via bank transfer to the designated account. Submit by September 12, 2025. 4.
- Trade Rights: If not subscribing, sell rights on NGX through a broker. Non-shareholders can buy rights for indirect participation.
In conclusion, Chams Holding's 2025 rights issue is more than a fundraising event. It's a gateway to Africa's digital future. With solid fundamentals, growth prospects, and a discounted entry point, it's an opportunity worth considering for savvy investors and shareholders to participate in the company’s next growth phase as it rebrands and expands across Africa. For investors with a long-term view, this could be a pivotal entry point into one of Nigeria’s pioneering tech solution providers.
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NOTE: This is not financial or investment advice. Always consult a financial advisor and conduct due diligence before investing. Stay tuned to NGX updates for the latest developments. For more, visit chamsholdco.com
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