Femi Otedola buys N18bn First HoldCo shares as stock hits record N150

Billionaire businessman and Chairman of First HoldCo Plc, Femi Otedola, has acquired an additional N18 billion worth of shares in the financial services group, strengthening his position as the company's largest individual shareholder. The stock hit a fresh record high of N150 per share on Friday, August 7, after a remarkable year-long rally.

Otedola, through his company Calvados Global Services Limited, purchased 138,041,465 shares at N131.20 each on Thursday, August 6, according to a regulatory filing with the Nigerian Exchange Limited (NGX). The transaction raises his stake in First HoldCo to about 26 per cent.

Otedola signals long-term commitment

The latest share purchase reinforces Otedola's long-term commitment to the banking group and signals that he could continue accumulating shares as the company pursues its growth strategy. The billionaire investor has previously indicated that his investment philosophy can involve pursuing majority ownership, potentially taking his stake beyond 51 per cent where strategic opportunities arise.

Such a move would represent a significant expansion of Otedola's influence over one of Nigeria's oldest and most prominent financial institutions. His growing stake has become a major talking point among investors, particularly as First HoldCo continues to post strong market and financial performance.

First HoldCo crosses N6 trillion market cap

First HoldCo recently achieved a major milestone, becoming the first banking group listed on the Nigerian Exchange to surpass N6 trillion in market capitalisation. The milestone was supported by strong half-year financial results, including profit after tax of more than N526 billion, alongside heightened demand for the company's shares.

The performance has helped transform investor sentiment around the stock, with First HoldCo emerging as one of the strongest performers in Nigeria's banking sector. The company, parent of First Bank of Nigeria, had earlier overtaken Zenith Bank to become the most valuable banking stock on the NGX, with market capitalisation of N4.80 trillion at that time. Guaranty Trust Holding Company (GTCO) ranked third.

Stock rally accelerates

First HoldCo's stock has delivered a dramatic rally over the past year. The shares previously traded as low as N29.25 before climbing to a 52-week high of N140. The upward momentum accelerated on Friday, August 7, when the stock hit a fresh high of N150 per share in early trading.

The new price represents a N10, or 7.14 per cent, increase from its previous level, underscoring the intensity of buying pressure surrounding the banking group. A company's market capitalisation is calculated by multiplying its current share price by the total number of outstanding shares.

For Nigerian investors and the broader equity market, the sustained rally in First HoldCo shares reflects strong confidence in the banking sector's fundamentals and could attract further interest in financial stocks on the NGX.