When Mayowa Olaniyan assumed the role of GMD/CEO at Chams Holding Company Plc in December 2022, she held the belief that the company’s shares were undervalued. Fourteen months later, Chams’ share price has risen to ₦2.50 from 50 Kobo in 2022, marking a 6.9% year-to-date increase.
In a call with TechCabal, Olaniyan expressed that the share price now reflects the proper value of the organization. Investors are rewarding Chams for its strategic decision to shift away from government clients, following a challenging national identity project that resulted in a $100 million loss.
Chams’ chairman, Demola Aladekomo, stated that the company has ceased dealing with the government and is now solely focused on consumer projects, emphasizing a commitment to serving individuals.
As part of this shift, Chams has adopted a holding company structure, allowing its subsidiaries to compete in various financial service sectors, including mobile money, cross-border payments, and education financing.
ChamsSwitch, the switching subsidiary, will concentrate on cross-border transactions and gateway payments. The subsidiary sees a lucrative opportunity in addressing payment bottlenecks for traders engaged in international transactions, particularly in places like Computer Village at Ikeja, where substantial business transactions from China lack proper payment solutions.
ChamsSwitch partnered with UnionPay in July 2023, a Chinese financial services corporation that provides bank card services within China. That partnership, along with an integration with Nigerian banks, will allow the subsidiary to issue UnionPay cards that support international payments.
“Providus Bank should go live by the end of Q1 2024.” Wema Bank and Heritage Bank are also among the financial institutions being onboarded.
CardCentre is taking a slice, but now it wants the whole pie
If you own a debit or SIM card, the odds are that CardCenter, a Chams subsidiary, produced it.
An August 2022 ban on SIM card importation means only local players can manufacture these cards. The subsidiary produces five million cards weekly (SIM and debit cards) and plans to expand its production lines. In July 2023, CardCentre added a second line for card production.
Joseph Olaoluwa and Noah Banjo; From the News Source: TechCabal
