Chams Holdings Plc’s Strategic Capital Raise through Rights Issue
Chams Holdings Plc, a prominent player in the Nigerian capital market, has embarked on a significant capital-raising initiative through a rights issue. The company aims to bolster its capital base and fuel operational expansion by offering 2,348,030,000 ordinary shares at a price of N1.70 per share, targeting a total of N3.99 billion in proceeds. This strategic move reflects Chams Holdings’ commitment to enhancing its financial strength and solidifying its position in the market. The rights issue provides existing shareholders with the opportunity to participate in the company’s growth trajectory while reinforcing their ownership stake.
The rights issue is structured to offer one new ordinary share for every two ordinary shares held by existing shareholders as of the close of business on Monday, the designated qualification date. This proportional allocation ensures equitable participation for all eligible shareholders, allowing them to maintain their relative ownership percentage in the company. The offer price of N1.70 per share represents a compelling investment proposition, considering Chams Holdings’ recent financial performance and positive market outlook.
To facilitate the smooth execution of the rights issue, Chams Holdings has enlisted the expertise of five reputable stockbroking firms: Tiddo Securities Limited, Cowry Securities Limited, APT Securities and Funds Limited, Lambeth Capital Limited, and CSL Stockbrokers Limited. These firms will act as intermediaries, ensuring efficient processing of applications and allocation of shares to participating shareholders. Their involvement underscores Chams Holdings’ commitment to transparency and professionalism in conducting the rights issue.
The rights issue comes on the heels of Chams Holdings’ impressive financial performance in 2023. The company reported a profit of N20.22 million, marking a significant turnaround and demonstrating its resilience in the face of market challenges. This positive financial outcome reinforces investor confidence in Chams Holdings’ growth potential and underscores the strategic rationale behind the capital raise. The proceeds from the rights issue will further strengthen the company’s financial foundation and provide the necessary resources to pursue strategic initiatives, driving future growth and value creation for shareholders.
Chams Holdings’ capital-raising initiative aligns with its broader strategic objectives of enhancing operational efficiency, expanding market reach, and reinforcing its position as a leading player in the Nigerian capital market. The rights issue provides a platform for existing shareholders to participate in the company’s success story while attracting new investors seeking exposure to a promising growth opportunity. The injection of fresh capital will enable Chams Holdings to pursue strategic investments, expand its product and service offerings, and capitalize on emerging market trends, thereby solidifying its long-term growth prospects.
The successful completion of the rights issue will mark a significant milestone for Chams Holdings, signifying its commitment to sustainable growth and its ability to attract capital market support. The infusion of N3.99 billion will provide the company with the financial flexibility to pursue its strategic agenda, enhancing its competitive edge and generating robust returns for shareholders. As Chams Holdings moves forward, it is poised to leverage its strengthened capital base to capitalize on market opportunities, innovate new offerings, and further enhance its position as a leading player in the Nigerian capital market.
