Otedola’s First HoldCo Stake Hits N1.47trn After N222bn Acquisition

Chairman of First HoldCo Plc, Femi Otedola, has increased his ownership in the financial services group to 25.87 per cent following the acquisition of an additional 1.779 billion ordinary shares valued at approximately N222.2bn, further strengthening his position as the company’s largest individual shareholder.

The latest acquisition, disclosed in a regulatory filing submitted to the Nigerian Exchange (NGX), raises Otedola’s total beneficial interest in First HoldCo to 11.763 billion shares, with the holding now valued at approximately N1.47 trillion (about $1bn) based on the transaction price of N124.90 per share.

The purchase represents one of the largest individual investments in Nigeria’s financial services sector and underscores Otedola’s growing confidence in First HoldCo’s long-term growth prospects amid the company’s strong financial performance and improving market valuation.

The acquisition comes barely a week after Calvados Global Services Limited, a related entity associated with Otedola, purchased 706.13 million shares worth N77.59bn in First HoldCo, bringing the combined value of fresh investments linked to the businessman in the company to nearly N300bn within just over a week.

Following the latest transaction, Otedola’s stake has increased significantly from his previous holding position, reinforcing his strategic interest in the financial holding company, which owns one of Nigeria’s leading banking institutions.

The continued accumulation of First HoldCo shares comes amid a strong rally in the company’s stock price, which has gained more than 120 per cent over the past month, making it one of the best-performing large-cap stocks on the Nigerian Exchange during the period.

Market analysts said the sharp appreciation in First HoldCo’s share price reflects renewed investor interest in banking stocks, improved earnings expectations and broader market reassessment of the valuation of Nigerian financial institutions.

The development has also intensified discussions around the valuation gap between Nigerian banks and their continental peers. Despite delivering strong returns on average equity (ROAE), many Nigerian banks continue to trade below their book values.

According to the NGX filing, Otedola acquired 1,779,094,976 ordinary shares of First HoldCo at N124.90 per share, translating to a total transaction value of about N222.2bn.

The filing stated that following the acquisition, Otedola’s total beneficial ownership rose to 11,763,018,192 ordinary shares, representing 25.87 per cent of First HoldCo’s issued share capital.

The transaction further highlights the businessman’s commitment to increasing his exposure to the financial services sector, following his emergence as chairman of First HoldCo and his continued investment in the company.

Analysts noted that the increased ownership position could provide additional confidence to investors regarding the company’s strategic direction, particularly as First HoldCo continues efforts to strengthen its balance sheet, expand earnings capacity and enhance shareholder value.

The company has recently recorded improved financial performance, supported by growth across its banking operations, stronger digital platforms and improved efficiency across its businesses.

The latest investment also comes at a time when Nigerian banking stocks have experienced renewed investor interest following improved earnings, stronger capital positions and expectations of sustained profitability in the sector.

With Otedola’s expanded stake now approaching a market value of N1.47tn, the investment ranks among the most significant individual holdings on the Nigerian Exchange and reinforces his position as one of the most influential investors in Nigeria’s financial sector.