Table of Contents
Key Points
- Jim Ovia's stake in Zenith Bank increased by N11.69 billion ($7.09 million) in 42 days, reflecting growing investor confidence in the bank.
- Zenith Bank's share price surged 8.72% since September 17, driving market capitalization closer to $750 million and benefiting shareholders like Ovia.
- Despite a 0.8% year-to-date increase, Zenith Bank shares have lost 46.5% in dollar terms, highlighting foreign exchange challenges for investors.
Jim Ovia, Nigeria’s richest banker and a key player in the nation’s banking sector, has seen a notable increase in the market value of his stake in Zenith Bank, driven by a recent surge in the leading bank’s share price on the Nigerian Exchange (NGX).
Ovia, the founder and chairman of Zenith Bank, holds a controlling stake of 16.2 percent — equivalent to 5,082,800,739 shares.
His stake has increased by N11.69 billion ($7.09 million) over the past 42 days. This reflects growing investor confidence in the bank’s strategic direction within the financial services industry.
This recent surge builds on a prior $15.2 million gain between July 31 and August 18, rising from N167.89 billion ($105.61 million) to N191.98 billion ($120.76 million).
Zenith Bank’s shares rise by 8.7%
Zenith Bank is Nigeria's most profitable bank and a top financial services provider in West Africa, licensed by the Central Bank of Nigeria. It ranks among the largest listed financial groups on the Nigerian Exchange.
In recent times, Zenith Bank’s share price has increased by 8.72 percent, from N36.7 ($0.022) on Sept. 17 to N39 ($0.024), pushing the bank’s market capitalization closer to $750 million. This rally has delivered impressive gains to shareholders, benefiting Jim Ovia, the bank’s largest stakeholder.
Ovia, a key figure in Nigeria’s banking sector, has seen his 16.2 percent stake increase by N11.69 billion ($7.09 million) over the past 42 days, rising from N186.54 billion ($113.11 million) to N198.23 billion ($120.20 million).
Your Money and Your Life
Zenith Bank's shares have struggled on the NGX, with a 0.8 percent year-to-date increase in local currency. However, the sharp devaluation of the naira against the dollar has greatly affected foreign investors, leading to a 46.5 percent loss in dollar terms, despite stable performance in local currency.
A $100,000 investment at the start of the year is now worth $53,464, resulting in a loss of $46,536. This situation underscores the growing foreign exchange challenges faced by investors in Nigeria's equity market.
