South African tycoon Laurie Dippenaar has witnessed a substantial decrease in the market value of his stake in FirstRand 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 declined by R794.75 million ($41.4 million) since Aug. 23, as investors on the local bourse continue to reduce their stakes in the Johannesburg-based group.
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.Â
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.
Presently, Dippenaar holds a 1.76-percent stake in FirstRand, or 98,726,988 shares. However, the recent turbulence in the stock market has taken its toll on the value of his holdings.
Over the past 35 days, FirstRand shares on the local bourse have experienced a notable decrease of 11 percent, falling from R73.16 ($3.813) on Aug. 23 to R65.11 ($3.390) at the time of reporting, and thus pushing the group’s market capitalization drastically below the $20-billion mark.
Consequently, the market value of Dippenaar’s stake in the leading financial services provider has slumped by R794.75 million ($41.4 million), from R7.22 billion ($376.26 million) on August 23 to R6.43 billion ($334.86 million) at the time of reporting.
Dippenaar’s wealth, closely tied to his historic involvement with FirstRand, mirrors the ebb and flow of the financial markets, serving as a testament to the volatile nature of the industry.
