Key Points:
- Tshepo Mahloele’s stake in Capitec Bank dropped $31 million due to a recent plunge in the bank’s share price.
- The South African bank’s stock fell over 3% in two days, dragging its market cap below $13.5 billion.
- Despite the recent decline, Capitec shares are still up 6.4% this year, offering investors some positive returns.
South African business magnate Tshepo Mahloele has suffered another significant decline in the market value of his stake in Capitec Bank. The drop comes amid sustained profit-taking activity that has driven down the bank’s share price on the Johannesburg Stock Exchange (JSE) in recent times.
According to data tracked by Billionaires.Africa, Mahloele — one of South Africa’s wealthiest individuals — has seen the market value of his stake in Capitec Bank drop by R596.68 million ($31.54 million). This follows a $24.84 million loss between May 10 and 28, when his stake declined from R19.3 billion ($1.05 billion) to R18.84 billion ($1.03 billion).
Capitec Bank shares plunge over 3 percent in two days
Capitec Bank, co-founded in 1999 by Michiel Le Roux, Jannie Mouton, and Riaan Stassen, has solidified its position over the past two decades, building a substantial customer base. With more than 850 branches and 7,400 ATMs across South Africa, the bank has become a top retail banking brand globally.
In just two days, Capitec Bank’s shares on the JSE have dropped by 3.2 percent, falling from R2,227.26 ($117.71) on June 3 to R2156.31 ($113.96). This decline has brought the company’s market capitalization below $13.5 billion, resulting in significant losses for shareholders.
Mahloele’s Capitec stake drops on share price decline
Tshepo Mahloele, founder and chairman of Lebashe Investment Holding Group, holds an indirect 7.26 percent stake in Capitec Bank, representing 8,409,802 ordinary shares.
The recent decline in Capitec Bank’s share price has caused Mahloele’s holding to fall by R596.68 million ($31.54 million) over two days, decreasing from R18.7 billion ($989.95 million) to R18.13 billion ($958.42 million).
Your Money and Your Life: Capitec bucks decline
Despite a sustained decline in its share price recently, Capitec Bank’s shares are among those that have delivered gains to investors year-to-date.
The stock has risen 6.41 percent so far this year, reflecting continued investor interest in the retail bank. A $100,000 investment at the beginning of the year would currently be worth $106,410, representing a gain of $6,410.
