Otedola acquires additional 1.779bn ordinary shares worth N222.2bn on First HoldCo, raises stake to 25.87%

Chairman of First HoldCo Plc, Femi Otedola, has significantly acquired more stake in the company thus tightening his investment in the financial holding company after acquiring an additional 1.779 billion ordinary shares worth approximately N222.2 billion.

The acquisition, disclosed in a regulatory filing submitted to the Nigerian Exchange (NGX), raises Otedola’s total beneficial shareholding to 11.76 billion shares, representing 25.87% of the company’s issued share capital.

At the purchase price of N124.90 per share, his stake is now valued at approximately N1.47 trillion, making it one of the largest financial services-related individual shareholdings on the Nigerian Exchange.

The latest purchase comes barely a week after a related entity, Calvados Global Services Limited, acquired 706.13 million shares worth N77.6 billion, underscoring Otedola’s aggressive accumulation of First HoldCo stock amid the company’s record financial performance.
The acquisition also comes as First HoldCo’s share price continues its remarkable rally, with the stock gaining more than 120% over the past month, making it one of the Nigerian Exchange’s best-performing large-cap stocks.

The bank’s rapid re-rating has also reignited debate over the valuation of Nigerian banking stocks. Despite delivering returns on average equity (ROAE) that compare favourably with many leading African lenders, most Nigerian banks continue to trade below their book value.

First HoldCo has bucked that trend, with its shares now trading at about 1.7 times book value on an annualised ROAE of roughly 30%, bringing its valuation closer to those of leading pan-African banking peers.

A regulatory filing submitted to the Nigerian Exchange shows that Femi Otedola acquired 1,779,094,976 ordinary shares of First HoldCo at N124.90 per share, valuing the transaction at approximately N222.2 billion.

Following the transaction, Otedola’s total beneficial interest in the company has increased to 11,763,018,192 ordinary shares, representing 25.87% of the company’s issued share capital.

The latest acquisition follows last week’s insider transaction involving Calvados Global Services Limited, a company related to Otedola, which acquired 706.13 million shares worth N77.59 billion.

Combined, the two acquisitions represent fresh investments of nearly N300 billion in First HoldCo within just over a week, further reinforcing Otedola’s conviction in the bank’s long-term prospects.

Based on the company’s closing share price of N124.90, his 11.76 billion-share holding is now worth approximately N1.47 trillion or $1 billion, reflecting both his continued accumulation of shares and the sharp appreciation in the stock over the past month.

The latest acquisition has also significantly increased the market value of Otedola’s investment in First HoldCo, and is expected to intensify speculation over Otedola’s long-term ambitions for First HoldCo.