Billionaire businessman Femi Otedola has acquired an additional N18 billion worth of shares in First HoldCo Plc, boosting his stake to approximately 26 per cent and sending the company's stock to a record high of N150 per share on the Nigerian Exchange (NGX).
Details of the Share Purchase
According to a regulatory filing with the NGX, Otedola, through his company Calvados Global Services Limited, purchased 138,041,465 shares at N131.20 each on Thursday, August 6. This latest transaction reinforces his position as the largest individual shareholder in the financial services group.
The acquisition comes as First HoldCo's market valuation surges, driven by strong financial results and robust investor confidence. The company recently surpassed N6 trillion in market capitalisation, a first for any Nigerian banking group listed on the exchange.
Otedola's Growing Influence
Otedola's continued share accumulation signals his long-term commitment to the banking group. The billionaire investor has previously indicated that his investment philosophy may involve pursuing majority ownership, potentially taking his stake beyond 51 per cent where strategic opportunities arise.
Such a move would represent a significant expansion of Otedola's influence over one of Nigeria's oldest and most prominent financial institutions. His growing stake has become a major talking point among investors, particularly as First HoldCo continues to post strong market and financial performance.
Market Milestones
First HoldCo recently achieved a major milestone by becoming the first banking group on the NGX to surpass N6 trillion in market capitalisation. This was supported by strong half-year financial results, including a profit after tax of more than N526 billion, alongside heightened demand for the company's shares.
The performance has helped transform investor sentiment, with First HoldCo emerging as one of the strongest performers in Nigeria's banking sector. The stock has delivered a dramatic rally over the past year, climbing from a low of N29.25 to a 52-week high of N140.
Record High Share Price
The upward momentum accelerated on Friday, August 7, when the stock hit a fresh high of N150 per share in early trading. This represents a N10, or 7.14 per cent, increase from its previous level, underscoring the intensity of buying pressure surrounding the banking group.
According to Legit.ng, First HoldCo has also emerged as the most valuable banking stock on the NGX, overtaking Zenith Bank after its market capitalisation reached N4.80 trillion. Guaranty Trust Holding Company (GTCO) ranked third in the same assessment.
Investor Confidence and Future Outlook
Analysts attribute the rally to Otedola's strategic investments and the group's solid financial fundamentals. The company's market capitalisation, calculated by multiplying its share price by the total number of outstanding shares, reflects its growing value on the exchange.
With Otedola's continued accumulation and the group's strong performance, First HoldCo is poised for further growth, potentially setting new records in the Nigerian banking sector.
