Shares of Herbert Wigwe’s Access Bank are up by $82 million following South Africa unit launch

The market capitalization of Herbert Wigwe’s Access Bank Plc has risen by $82.16 million (N33.77 billion) following the launch of its South Africa division, Access Bank South Africa Limited.

The $82.16-million surge in its market capitalization came on the back of a 12-percent rise in the bank’s share price on the Nigeria Stock Exchange (NGX).

The increase in the lender’s share price was spiked by bullish sentiment after the bank acquired Grobank in May and announced plans to develop a full-suite banking offering for consumers and small businesses in South Africa.

The deal to acquire a 91-percent stake in Grobank was valued at $60 million. After the acquisition, the bank was renamed Access Bank South Africa. This made Access Bank the first Nigerian lender to venture into South Africa.

Since the official launch of the South Africa unit on June 14, shares in the top financial services provider have surged from $0.020 (N8.20) to $0.22 (9.15) percent as of July 8.

In reaction to the 12-percent rise in the market value of the bank’s shares, the lender’s market capitalization has increased from $709.19 million (N291.47 billion) to $791.35 million (N325.24 billion) between June 14 and July 8.

This translates to an $82.16-billion rise in the group’s market capitalization in 129 days, while the equity stake of Wigwe, the bank’s CEO, has increased by $3.51 million (N1.44 billion) between June 14 and July 8.

As of July 9, 4:30 pm (UTC+1), his stake was valued at $33.79 million (N13.89 billion), making him the 19th wealthiest investor on the Nigerian Stock Exchange, Billionaires.Africa reported.