Nigerian businessman Tony Elumelu, who ranks as one of Africa’s most influential business executives, has experienced a $3-million decline in the market value of his stake in United Bank for Africa (UBA) as shares in the bank slump by six percent over the past eleven days.
The recent slump in the market value of his stake comes on the heels of an extraordinary surge in UBA’s share prices, which saw his shares in the bank skyrocket from N33.21 billion ($42.80 million) on July 20 to N36.51 billion ($47.06 million) on July 21, reflecting an impressive increase of N3.31 billion ($4.26 million) in just one day.
UBA, a dominant force in Nigeria’s financial services industry with a strong presence in 24 countries across four continents, including the UK, the United States, France, and the United Arab Emirates, holds a pivotal position in the African financial landscape.
Elumelu, with a notable 7.17-percent stake in UBA, or 2,450,603,739 ordinary shares, ranks not only as one of the richest investors on the Nigerian Exchange but as one of the richest men in the country.
However, over the past eleven days, UBA’s share price experienced a sharp decline of 6.3 percent, plummeting from N14.90 ($0.0195) on July 21 to N13.95 ($0.0184) at the time of drafting this report. As a result, the bank’s market capitalization has shrunk to N479 billion ($597 million), placing it as the 14th most valuable company on the Nigerian Stock Exchange.
According to data tracked by Billionaires.Africa the market value of Elumelu’s stake in UBA has dwindled from N36.51 billion ($48.1 million) on July 21 to N34.2 billion ($45.04 million) on Aug. 1, largely attributed to the decline in the bank’s share prices on the Nigerian Exchange.
Despite this substantial loss, Elumelu maintains his position as one of the wealthiest investors on the local bourse and continues to be one of Nigeria’s richest businessmen. His influence in the continent’s economic landscape remains significant, even in the face of market fluctuations.
The decline in the market value of his UBA stake highlights the inherent volatility in financial markets, underlining the challenges and opportunities that prominent investors like Elumelu navigate daily.
