Nigerian billionaire Abdul Samad Rabiu lost $1.2 billion on his investment in BUA Cement Plc in August, as investors axed their stakes in the leading cement company in an attempt to conserve wealth.
BUA Cement is Nigeria’s second-largest cement producer with a combined installed capacity of 8 million tonnes per annum. It operates under the leadership of Rabiu, who owns 92.2 percent of the company.
The cement manufacturer also plans to boost its installed cement production capacity to 17 million metric tonnes per year in an effort to bolster its position as an industry leader in Nigeria.
In August, shares in the leading cement manufacturer slumped by nearly 25 percent as investors on the Nigerian Exchange trimmed down their stakes in the cement firm amid growing macroeconomics weakness and uncertainty.
According to data obtained by Billionaires.Africa, shares in the cement maker dropped from N69.3 ($0.164) per share at the start of August to N52 ($0.123) per share at the end of the month, resulting in a 24.96-percent loss for shareholders including Rabiu, who owns the bulk of the company.
As a result of the recent decrease in the company’s shares, the market value of Rabiu’s 92.2-percent stake in BUA Cement fell from N2.16 trillion ($5.11 billion) on Aug. 1 to N1.62 trillion ($3.84 billion) on Aug. 31.
This amounts to a N540.09-billion ($1.27 billion) loss for the leading billionaire, who ranks among Africa’s wealthiest businessmen.
As a result of the drop in the share price of BUA Cement, which accounts for the majority of Rabiu’s fortune, the businessman lost his status as Nigeria’s second-richest man to telecom and oil mogul Mike Adenuga.