Otedola's Stake Increase Details
Billionaire investor Femi Otedola has increased his ownership in First Holdco Plc to 20.4%, up from 17.5% previously, according to a regulatory filing with the Nigerian Exchange Group. The acquisition of additional 2.9% shares comes as the company's first-half 2025 earnings report fueled a significant rally in its stock price.
H1 Earnings Fuel Stock Rally
First Holdco reported a 45% jump in profit after tax for the first half of 2025, reaching N85 billion compared to N58.6 billion in the same period last year. Revenue also surged by 38% to N420 billion, driven by strong performance across its banking and financial services subsidiaries. The positive results sent the stock price up by 12% over the past week, closing at N28.50 per share on Friday.
According to the filing, Otedola acquired 500 million additional shares through a series of transactions on the exchange, bringing his total holdings to 3.5 billion shares. The transactions were executed between July 10 and July 17, 2025.
Market Reaction and Analyst Views
Market analysts have reacted positively to both the earnings report and Otedola's increased stake. "Otedola's continued accumulation signals strong confidence in First Holdco's growth trajectory," said Abiola Rasaq, head of research at Lagos-based investment firm Chapel Hill Denham. "The H1 numbers are impressive, and we expect the stock to maintain its upward momentum."
First Holdco's board has also proposed an interim dividend of N0.50 per share, payable to shareholders on August 15, 2025. This is the first interim dividend declared by the company in three years.
Broader Market Context
The stock rally is part of a broader uptrend in the Nigerian banking sector, which has seen increased investor interest following regulatory changes and improved earnings. The NGX Banking Index has gained 18% year-to-date, outperforming the All-Share Index's 6% rise.
Otedola, who is also the chairman of FBN Holdings, has been steadily increasing his stake in First Holdco since 2023. His latest acquisition brings his total investment in the company to over N100 billion, making him the largest individual shareholder.
