Nigeria’s ICT company Chams Excites Shareholders With a Promise to Go Public

Mergers, Acquisitions and Financial Results

Nigerian IT solutions firm, Chams Nigeria Limited, Wednesday in Lagos held its 24th Annual General Meeting with a decision to be listed on the Nigerian Stock Exchange (NSE). The IT solutions providers, which is the foremost identification and payment solutions provider, would however precede the public listing with a private placement to raise N5 billion.

At an event that took place at Muson Centre in Lagos, shareholders heard the results for the 2006 financial year and the six months of 2007 presented by the Chairman of Chams, Prof. Adebayo Akinde. He said the firm's turnover for the year ended December, 2006 was N1.095 billion, with a profit of N399m as against N136 million and profit after tax of N21.7m recorded in 2005.

He said Chams performance was however very impressive in the current year, where it had recorded a turnover of N3.079 and a profit after tax of N965.9 between January and June 2007.

Based on the company's performance, the Chams Board of Directors proposed a dividend of 70 kobo per share. In addition, a bonus share issue of four new shares for every share held will be given to all existing shareholders on the company's register as at close of work on October 24th 2007.

"Such shares shall rank pari pasu in all respects with the existing share of the company." This largesse was received with great applause and commendation by members of the company.

Akinde and the Chief Executive Officer of Chams Nigeria Limited, Demola Aladekomo, sought and obtained approval of the members to embark on a private placement shortly. He said shareholders fund increased to N897.6m after the last private placement that it carried out in 2006.

The funds, to be raised, he said would be used to fund nationwide deployment of ChamsAccess Service terminals. ChamsAccess are multi application terminals used for telephony, recharge voucher vending, internet access, bill payment, advert, games etc. The terminals have been accepted as a means of payment and transactions, after the proof of concept done in selected locations in Lagos, Abuja, Igbinedion University in Edo State and OAU in Osun State.

In addition, Aladekomo said, the firm would also set up an electronic payment/transaction switch in the country.

Aladekomo added that part of the success recorded by the company in the past year, include the successful printing of 70m INEC voters ID card within a period of 12 weeks.