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South African star banker and billionaire Michiel Scholtz du Pre Le Roux’s ownership stake in Capitec Bank CPI has surged by about $250 million (R3.5 billion) since April 13.
The uptick was driven by a 19-percent increase in South African lender’s shares from $100 per share (R1,390.5 per share) on April 13 to a record high of $119.14 per share (R1,651.91) at the close of trading on the Johannesburg Stock Exchange (JSE) on May 26.
The bank, which is one of the most reputable banking brands globally, according to the Brand Finance Banking 500 ranking, was founded in 1999 by Le Roux.
The South African’s net worth is around $1.2 billion, according to Forbes.
Capitec Bank has recently grown into one of South Africa’s leading lenders. Its robust offerings cover transactional banking services and loan products such as term loans, credit facilities and credit cards.
Despite a 27-percent decline in the bank’s headline earnings to $332 million (R4.6 billion) at the end of its 2021 accounting year, its shares have lately been on the rise.
The decline was the result of a government-imposed COVID-19 lockdown in South Africa that disrupted critical banking operations during the first half of its accounting year.
At a record high price of $119.14 per share (R1,651.91 per share), the leading bank is valued at $13.8 billion (R191 billion) on the JSE.
According to data from the JSE, the market valuation makes the bank South Africa’s third-biggest banking group behind Standard Bank and FirstRand Limited, which maintains its position as the country’s largest lender by market capitalization on the local bourse.
Le Roux, a substantial shareholder in the bank with an ownership stake of about 11.5 percent, is one of the institution’s few insiders and directors who benefited from the surge in the bank’s shares.
The recent gains by Capitec have led the value of the billionaire’s 13,296,153 ordinary shares to climb from $1.33 billion (R18.5 billion) on April 13 to $1.58 billion (R22.0 billion) as of May 26.
This puts Le Roux’s earnings at around $250 million (R3.5 billion), or 19 percent in 42 days.
