Nigerian billionaire Femi Otedola has seen the market value of his stake in First Bank of Nigeria Holdings (FBNH) increase by N2 billion ($4.9million) since the start of November as a result of double-digit growth in his stake.
The double-digit surge in the lender’s share price can be linked to investor cherry-picking on the Nigerian Exchange, after shares in the financial services group fell to their lowest price since early October due to profit-booking activities on the Nigerian bourse.
FBNH is one of the top five financial services providers in Nigeria, Africa’s largest economy.
As of June 30, the bank was the fourth-largest in the country, with total assets valued at N8.02 trillion, eclipsing Guaranty Trust Holdings, whose assets are valued at N5.02 trillion.
A billionaire and oil magnate, Otedola, who acquired a substantial stake in the lender, currently holds a 5.07-percent stake, or 1,818,551,625 shares, from the company’s issued share capital, which amounts to 35,895,292,791 shares.
As of press time, Nov. 8, shares in the holding were worth N11.1 per share, giving the leading financial group a N398.4-billion ($970.9 million) market capitalization.
Since the start of the month, the lender’s share price has increased from N10 ($0.02437) per share on Nov. 2 to N11.1 ($0.02705) per share on Nov. 8. This translates to an 11-percent gain for investors in six days.
Meanwhile, the market value of Otedola’s stake since Nov. 2 has increased from N18.2 billion ($44.3 million) on Nov. 2 to N20.2 billion ($49.2 million) as of the time of writing.
This translates to a N2-billion ($4.9million) gain for the billionaire in six days.
It is unclear if the billionaire has recorded gains or losses from his position in the holding since he acquired shares, as information related to the exact date of his acquisition is not readily available.
However, the market value of his stake has undoubtedly increased since early November when the lender’s shares were worth N10 ($0.02437) per share.
