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South African tycoon Laurie Dippenaar has seen the market value of his stake in FirstRand slump by more than $7 million in less than two weeks due to a significant decline in the shares of the leading financial services group on the Johannesburg Stock Exchange.
According to data tracked by Billionaires.Africa, Dippenaar’s stake in FirstRand, has slumped by R102.68 million ($7.36 million) since Aug. 10 as investors on the local bourse continue to reduce their stakes in the Johannesburg-based group.
Laurie Dippenaar’s journey to financial success began in 1977, when he co-founded Rand Consolidated Investing alongside partners GT Ferreira and Paul Harris. The company went through a series of mergers and acquisitions, eventually leading to the formation of FirstRand in the 1990s.
Since its inception, FirstRand has played a pivotal role in the financial services industry across Africa, and today it ranks as Africa’s most valuable financial services conglomerate.
Currently, Laurie Dippenaar holds a 1.76-percent stake in FirstRand, equivalent to 98,726,988 shares. The surge in FirstRand’s shares and currency devaluation has led to a significant decrease in the market value of his stake.
Over the past 12 days, FirstRand shares on the local bourse have experienced a notable decrease of 1.93 percent, falling from R73.04 ($3.889) on Aug. 10 to R72.25 ($3.846) on Aug. 22, pushing the group’s market capitalization drastically below the $450-billion mark.
Consequently, the market value of Laurie Dippenaar’s stake in the leading financial services provider has slumped by R102.68 million ($7.36 million), from R7.21 billion ($382.43 million) as of August 10 to R7.11 billion ($375.06 million) at the time of reporting.
Market analysts attribute the recent decrease in FirstRand shares to the decline in buying pressures on the Johannesburg Stock Exchange. As investors actively reshuffle their portfolios, FirstRand’s shares have experienced diminished interest and reduced appeal, returning losses to stakeholders like Dippenaar.
In addition to his significant interest in the financial services industry, Dippenaar serves as the non-executive chairman of FirstRand, overseeing its operations in both the banking and insurance sectors.
