Sam Darwish’s stake in IHS Holding dips below $40 million

Timilehin Adejumobi -
Key Points
  • Sam Darwish's net worth drops as IHS Holding stake falls below $40 million due to sustained share price decline on NYSE.
  • IHS Holding shares down 28% YTD, with a significant 83% decline since IPO, reflecting ongoing challenges for the telecom tower company.
  • IHS market cap slips below $950 million as the company faces financial strain, including a 20.3% revenue drop and a $124 million loss.

Sam Darwish, U.S.-Nigerian telecom magnate, continues to see his net worth slide, with his IHS Holding stake now valued below $40 million amid a sustained share price decline on the New York Stock Exchange spurred by selling interest among investors.

Darwish, the chairman and CEO of IHS, remains a top figure in the African telecom sector, holding a significant 3.8 percent stake in IHS Holding, equivalent to 12,787,788 ordinary shares.

Over the past three weeks, the value of his holdings has dropped by $3.1 million, tracking a 7.8 percent fall in IHS shares, which slipped from $3.08 on Oct. 18 to $2.84, reducing his stake from $39.4 million to $36.3 million.

IHS faces 83 percent decline since IPO

Founded in 2001 by Sam Darwish, IHS Holding has grown into the world’s third-largest independent telecom tower company by tower count. The company has added 385 tenants, completed 1,566 lease amendments, and built 207 new towers, with 136 of them in Brazil.

Despite these expansions, IHS shares are down 28 percent year-to-date, highlighting ongoing challenges for the New York-listed firm. IHS is considering selling its tower operations in Rwanda and Zambia to reduce debt.

Since its October 2021 debut on the NYSE, IHS shares have plunged over 83 percent, meaning a $100,000 investment at the time would now be worth $17,000—a loss of $83,000.

IHS market cap falls below $950 million

IHS Holding's market cap has fallen below $950 million, as recent share price fluctuations increase pressure on CEO Sam Darwish and his team to stabilize performance and rebuild investor confidence.

In the second quarter of 2024, revenue dropped 20.3 percent to $435.4 million from $546.2 million a year earlier, largely due to the 63.5 percent devaluation of the Nigerian naira.

This currency hit led to a net loss of $124.31 million, with $169.7 million in unrealized foreign exchange losses, underscoring the ongoing impact of Nigeria’s volatile FX market.

Despite the hurdles, Darwish remains a key figure in African telecoms as IHS seeks to regain its footing in a tough market.