South African tycoon Laurie Dippenaar loses $17.1 million in FirstRand stake

Feyisayo Ajayi -

Key Points

  • Laurie Dippenaar’s stake in FirstRand has fallen by $17.11 million in 20 days due to a share price drop on the JSE.
  • FirstRand shares slump by 3.93%, pushing its capitalization below $24 billion on the Johannesburg Stock Exchange (JSE). 
  • Despite recent losses, FirstRand shares are up 5.46% year-to-date, yielding a positive return for investors.

South African business magnate Laurie Dippenaar has seen a substantial decline in the market value of his holding in FirstRand, following a notable downturn in the shares of the prominent financial services group on the Johannesburg Stock Exchange (JSE).

According to data tracked by Billionaires.Africa, Dippenaar’s stake in FirstRand has diminished by R316.91 million ($17.11 million) over the last 20 days. This decline comes as investors on the JSE continue to trim down back their stake in the Johannesburg-based financial giant.

This setback follows a period of growth, during which his stake in FirstRand enjoyed a $26.55 million boost from June 27 to July 12. During this period, the value of his stake climbed from R8.07 billion ($436.97 million) to R7.75 billion ($419.80 million).

FirstRand’s market cap falls below $24 billion

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.

In recent times, FirstRand’s share price has decreased by 3.93 percent, dropping from R81.70 ($4.419) to R78.49 ($4.244). This decline has pushed the company’s market capitalization below $24 billion, making it the ninth most valuable company on the JSE.

Dippenaar’s stake experiences notable reduction

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

Amid the recent decline in FirstRand shares, the market value of Dippenaar’s stake has dropped from R8.07 billion ($435.48 million) on July 17 to R7.75 billion ($418.37 million).

Your Money and Your Life

Despite these recent losses, FirstRand shares have shown a strong performance for the year. The stock is up by 5.46 percent year-to-date, offering a positive return for investors. A $100,000 investment at the start of 2024 would now be worth $105,459, marking a gain of $5,459.