South African tycoon Laurie Dippenaar loses $32 million in FirstRand stake in 17 days

Feyisayo Ajayi -

Key Points:

      • Laurie Dippenaar’s FirstRand shares plummeted, slashing his wealth by $32.2 million in 17 days due to market volatility.
      • FirstRand shares nosedive by 8.87% in 17 days, dragging market capitalization below $19 billion, causing significant losses for shareholders.
      • FirstRand’s 13.94% year-to-date share decline prompts unease among investors, reflecting a substantial loss in portfolio value.

    South African businessman Laurie Dippenaar has experienced a significant downturn in his wealth following a recent plunge in the market value of his shares in FirstRand, propelled by fluctuations in the lender’s share price on the Johannesburg Stock Exchange (JSE).

    According to stock market data tracked by Billionaires.Africa, Dippenaar’s stake in FirstRand has declined by R 608.16 million ($32.21 million) over the past 17 days. This decline is primarily attributed to local investors reducing their holdings in the renowned Johannesburg-based financial services provider.

    The decline in Dippenaar’s wealth follows a brief surge, during which his stake in FirstRand saw a $22.22 million gain between May 6 and 17. During this period, the market value of his stake soared from R6.39 billion ($351.60 million) to R6.79 billion ($373.81 million), highlighting the volatility prevalent in financial markets.

    FirstRand shares decline

    FirstRand is Africa’s largest financial services group in terms of market capitalization. Its integrated financial services portfolio comprises FNB, RMB, WesBank, and Aldermore, as it maintains active operations in South Africa, the UK, and regional markets in Africa.

    Over the last 17 days, FirstRand shares have declined by 8.87 percent, falling from R69.42 ($3.68) on May 21 to R63.26 ($3.37) at the time of reporting. This downturn has driven its market capitalization below $19 billion, resulting in notable losses for shareholders, including Dippenaar.

    Dippenaar’s position in FirstRand

    Laurie Dippenaar, who co-founded Rand Consolidated Investing in 1977 alongside GT Ferreira and Paul Harris, and developed it into a leading financial services group, currently holds a 1.76 percent stake in FirstRand, equivalent to 98,726,988 shares.

    However, the recent decline in FirstRand shares has seen the market value of his stake in the leading lender decline by R608.2 million ($32.21 million) in the past 17 days, from R6.85 billion ($362.98 million) on May 21 to R6.25 billion ($330.77 million) at the time of writing.

    Despite the recent decline, Dippenaar maintains his position as one of the top investors on the JSE and remains one of the most affluent businessmen on the African continent. His resilience and strategic acumen continue to solidify his standing in the financial world.

    Your Money and Your Life

    FirstRand’s share price has shed 13.94 percent so far this year, pushing it below R64 ($3.4) and dragging its market capitalization under $19 billion. This weak performance has unnerved investors, who have seen the value of their holdings decline.

    A $100,000 investment at the start of the year would now be worth roughly $86,060, reflecting a loss of approximately $13,940.