Otedola Raises FirstHoldCo Stake for Fifth Time in a Month with N12.6bn Purchase

Femi Otedola, chairman of First HoldCo Plc, has increased his stake in the financial services group for the fifth time in just over a month after acquiring an additional 95.7 million shares worth N12.58 billion.

The latest purchase, made through his investment vehicle Calvados Global Services Limited, brings Otedola’s holding in FirstHoldCo to about 12.23 billion shares, representing approximately 26.6 percent of the company.

According to an insider dealing notice filed with the Nigerian Exchange Limited (NGX) on Monday and signed by Abiola Baruwa, group company secretary of FirstHoldCo, Calvados acquired 95,699,240 ordinary shares at N131.48 per share on August 24.

The transaction was executed on the floor of the NGX for an aggregate value of N12.58 billion.

The latest acquisition comes days after the businessman purchased 147.74 million FirstHoldCo shares for about N20.68 billion through Calvados.

The August 17 transaction was executed at N140 per share and increased his’s holding from about 11.99 billion shares to 12.13 billion shares. Before that, Otedola acquired 138.04 million shares worth N18.11 billion in a transaction executed on August 7.

The three August purchases have added about 381.5 million FirstHoldCo shares to Otedola’s portfolio at a combined cost of about N51.37 billion.

His latest acquisition is also the fifth disclosed increase in his FirstHoldCo stake since July 22.

On July 22, Otedola acquired 706.13 million shares valued at N77.58 billion, while on July 30 he bought a further about 1.78 billion shares worth N222.20 billion through Calvados.

The series of purchases has strengthened Otedola’s position as FirstHoldCo’s largest shareholder and taken his stake above 26 percent.

Otedola targets bigger stake

Otedola has previously indicated that he could increase his holding in FirstHoldCo to more than 51 percent, describing his investment in the financial institution as a long-term generational commitment.

He has also said he has invested more than N600 billion of his personal wealth in the financial institution.

The author became chairman of FirstHoldCo in January 2024 following the dissolution of the company’s previous board.

At the latest closing price of N127.90, Otedola’s approximately 12.23 billion FirstHoldCo shares are worth about N1.56 trillion.

FirstHoldCo, the parent company of FirstBank, has emerged as Nigeria’s most valuable banking group by market capitalisation, with its market value reaching N6 trillion before the recent decline in its share price.

The stock traded as high as N142 on August 7 but closed at N127.90 on Monday, down 1.58 percent, leaving the group with a market capitalisation of N5.82 trillion.

Otedola, whose estimated net worth is about $1.8 billion, has seen his wealth rise significantly alongside the value of his FirstHoldCo investment.

His latest purchase further underscores his growing exposure to the financial services group as he continues to increase his ownership.