Femi Otedola boosts First HoldCo stake to 20.42% after N30 billion share purchase

Femi Otedola, Chairman of First HoldCo Plc, has raised his shareholding in the company to 20.42% after buying 680.8 million additional shares through a private placement at N44 each. The purchase price was below the company's July 18 closing price of N61, according to market sources.

The acquisition cost about N30 billion, with Otedola and one other institutional investor taking up approximately 90% of the N45 billion placement. The move deepens Otedola's control over Nigeria's most valuable banking stock and lifts the market value of his stake to roughly N1.05 trillion.

Private placement details

A source familiar with the transaction said: "The private placement has been completed, and Mr Otedola acquired about 680.8 million shares, investing about N30 billion in the HoldCo. Another institutional investor who is already a shareholder acquired most of the remaining shares."

The private placement also lifted First HoldCo's share capital to N525.6 billion, clearing the Central Bank of Nigeria's N500 billion minimum capital requirement for banks holding international licences.

Otedola's growing position

The billionaire's position in First HoldCo has expanded sharply over the past 12 months. At the close of June 2025, he held 6.68 billion shares worth 15.95% of the company, when the stock traded at N26. By March 2026, his holding had grown to 8.06 billion shares, or 18.12%, with the share price at N50.

At the end of June 2026, his stake stood at 9.28 billion shares, representing 20.40% ownership, before the latest placement added a further 680.8 million shares. With his estimated post-acquisition holding of 9.96 billion shares and an intraday price of N105.50 on Monday, the total value of his investment stands at approximately N1.05 trillion. This places it among the largest individual equity positions on the Nigerian Exchange.

Strong financial results drive stock surge

First HoldCo's stock surge, which has helped Otedola increase his net worth, has been driven partly by a strong financial performance in the first half of 2026. The group posted a pre-tax profit of N653.54 billion for the period, up 83.5% from N356.15 billion in the same six months of 2025.

Profit after tax climbed 81.57% to N526.13 billion, while second-quarter pre-tax profit nearly doubled to N332.42 billion. The results pushed the share price up 10% in intraday trading to N105.50, and the company's market capitalisation rose to about N4.8 trillion, making it the highest-valued banking stock on the exchange.

For Nigerian investors, Otedola's continued accumulation of First HoldCo shares signals strong confidence in the banking group's earnings momentum and its ability to meet the CBN's new capital requirements. The stock's performance also reflects broader market optimism about the sector's profitability in the current economic environment.