Nigerian billionaire Femi Otedola has tightened his grip on First HoldCo Plc, raising his ownership to more than 20 percent following the group’s N45 billion private placement.
A BusinessDay analysis of First HoldCo’s latest shareholding disclosures and Nigerian Exchange (NGX) market data shows that Otedola’s combined direct and indirect interest in the banking group climbed to 9.29 billion shares, representing 20.42 percent, after participating in the company’s recently concluded N45 billion private placement, the second phase of its N350 billion recapitalisation programme.
The increase underscores Otedola’s long-term bet on the parent company of FirstBank, Nigeria’s oldest lender, at a time when investors are increasingly rewarding recapitalised banks expected to benefit from stronger balance sheets and higher lending capacity.
The market has responded aggressively. First HoldCo’s shares climbed to a record N105.50 on the Nigerian Exchange on Monday, trading at full bid with nearly 78 million shares on the bid side at the time of writing. At that price, Otedola’s stake was worth approximately N980 billion, equivalent to more than $710 million.
The appreciation means the value of his investment has more than doubled within weeks. Since early July, the market value of his holding has risen by roughly $357 million, from about $353 million to over $710 million, driven largely by renewed investor demand for banking stocks and optimism surrounding First HoldCo’s recapitalisation and earnings outlook.
