Nigerian oil tycoon Omamofe Boyo, a key player in the country’s energy sector, has witnessed a substantial decline in the market value of his stake in Oando Plc.
Over the past 23 days, the market value of Boyo’s indirect stake in Oando, one of Nigeria’s leading energy companies, has plummeted by a staggering N13.43 billion ($17.52 million).
This decrease is attributed to profit-taking activities by investors who had previously benefited from the energy company’s surging share price.
Boyo’s stake in Oando is held through his 33.33 percent stake in Ocean and Oil Development Partners (OODP), an investment firm co-owned by Boyo and Wale Tinubu. OODP holds a substantial portion of Oando’s shares, totaling 7,131,736,637 ordinary shares.
The recent catalyst for Oando’s soaring share price was the company’s announcement of its intent to acquire 100 percent of the Italian-owned shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
This announcement triggered a surge in Oando’s share price on the Nigerian Exchange, rising from N5.50 ($0.007) on Sept. 1 to reach an eight-year-high of N14.60 ($0.0189) on Sept. 20. This bullish run translated into significant gains for Boyo and Tinubu.
In the wake of these gains, a wave of profit-booking activities among retail investors has caused Oando’s shares to plummet by 38.7 percent within the past 23 days. At the time of drafting this report, Oando’s share price had fallen to N8.95 ($0.01167), reflecting a significant retraction.
As a result of this notable decrease in Oando’s share price on the Nigerian Exchange, the market value of Omamofe Boyo’s stake in the company has declined by N13.43 billion ($17.52 million) over the past 23 days.
This decline has caused the market value of his stake to decline from N34.7 billion ($45.26 million) on Sept. 20 to N21.27 million ($27.75 million).
