FirstHoldCo Chair Otedola’s Stock Buying Spree Tops N351bn in One Month

Femi Otedola, chairman of First HoldCo Plc, has spent N351.2 billion increasing his stake in the financial services group through five disclosed share purchases since July 22, underscoring his growing bet on Nigeria’s banking sector.

The latest acquisition, made through his investment vehicle Calvados Global Services Limited, saw Otedola purchase 95.7 million FirstHoldCo shares for N12.58 billion on August 24.

The purchase marks his fifth disclosed stake increase in just over a month, taking his total holding in the parent company of FirstBank to about 12.23 billion shares, equivalent to approximately 26.6 percent of FirstHoldCo.

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 purchase came a few days after the billionaire acquired 147.74 million FirstHoldCo shares for about ₦20.68 billion through Calvados.

The August 17 transaction was executed at N140 per share, increasing his holding from approximately 11.99 billion shares to 12.13 billion shares.

Before that, Otedola acquired another 138.04 million shares valued at N8.11 billion on August 7, continuing a buying spree that began in July.

N351bn buying spree

The businessman purchases have accelerated since July, with five transactions disclosed on the NGX in just over a month.

On July 22, he acquired 706.13 million shares valued at N77.58 billion.

Eight days later, on July 30, he acquired a further about 1.78 billion shares valued at N222.20 billion through Calvados Global Services.

The two July transactions alone amounted to roughly N299.8 billion.

The three August purchases added another N51.37 billion, bringing the value of the five disclosed acquisitions to approximately N351.2 billion.

The purchases have significantly strengthened Otedola’s position as FirstHoldCo’s largest shareholder and increased his exposure to the performance of the banking group.

His stake crossed 26 percent in July following the acquisition of shares worth more than N222 billion.

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 that 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.

FirstHoldCo value

At the latest closing price, Otedola’s approximately 12.23 billion shares are worth about N1.61 trillion, based on a share price of N132.

FirstHoldCo, the parent company of Nigeria’s oldest bank, has become the country’s most valuable banking group by market capitalisation, with its market value reaching N6 trillion at one point last week.

The shares traded as high as N142 on August 7, before giving up some of those gains.

On Monday, FirstHoldCo shares fell 1.58 percent to N127.90, reducing the group’s market capitalisation to N5.82 trillion.

Despite the recent pullback, the rise in FirstHoldCo’s share price this year has significantly increased the value of Otedola’s holding while his repeated purchases have further cemented his influence over the banking group.

Otedola, whose estimated net worth is about $1.8 billion, has emerged as one of Africa’s fastest-rising billionaires this year, with the increase in the value of his FirstHoldCo investment contributing significantly to the rise in his wealth.

The latest purchase therefore represents more than another insider transaction. It extends a sustained accumulation of FirstHoldCo shares that has seen Otedola deploy more than N350 billion in the market in just over a month.