Daily News on African Billionaires and UHNWIs

Nigerian gambling magnate Kessington Adebutu’s stake in Wema Bank falls $4.92 million

Timilehin Adejumobi -
Nigerian gambling magnate Kessington Adebutu’s stake in Wema Bank falls $4.92 million
Key Points
  • Kessington Adebutu's stake in Wema Bank fell by N7.57 billion ($4.92 million) as investors took profits after a strong rally.
  • Wema Bank’s shares dropped 10.25% in 18 days, pushing its market value below $155 million and cutting shareholder gains.
  • Despite the recent dip, Wema Bank has gained 20.33% this year, offering strong returns for early investors.

Nigerian gambling magnate Kessington Adebutu has lost nearly $5 million in the market value of his stake in Wema Bank since Feb. 24, as investors on the Nigerian Exchange (NGX) take profits following a strong rally in the lender’s shares.

Kessington Adebutu’s stake declines by $4.92 million

Adebutu, the founder of Premier Lotto, owns a 28.26 percent stake in Wema Bank through Neemtree Limited, holding 6,057,090,218 shares. Over the past 18 days, the value of his stake has fallen by N7.57 billion ($4.92 million) as investors continue selling off shares in the bank.

The decline comes after a strong run between Jan. 24 and Feb. 14, when Adebutu’s stake surged by $5.23 million, climbing from N62.99 billion ($41.81 million) to N70.87 billion ($47.04 million).

Wema Bank’s stock faces a 10.25% decline

Over the decades, Wema Bank as a financial services provider has evolved into one of the country’s leading financial institutions, boasting Africa’s first fully digital bank, ALAT. It is also one of Nigeria’s most resilient banks, with decades of experience in the financial services sector.

However, the bank’s shares have dropped 10.25 percent in the past 18 days, pushing its market value below $155 million. This decline has led to significant losses for shareholders, with the stock price slipping from N12.20 ($0.00793) on Feb. 24 to N10.95 ($0.0071) at the time of writing.

Adebutu’s Wema Bank stake sinks

Wema Bank’s recent share price slump has taken a toll on Kessington Adebutu’s stake in the lender, wiping out N7.57 billion ($4.92 million) in value. His holdings, which were worth N73.9 billion ($48.06 million) on Feb. 24, have now dropped to N66.33 billion ($43.13 million).

Despite this setback, Wema Bank remains a strong player in Nigeria’s financial sector, backed by its innovative digital banking platform and long track record of resilience. While Adebutu’s stake has taken a hit, he remains one of the top investors on the NGX.

Wema Bank shares up over 20 percent

Wema Bank is one of the most valuable stocks on the NGX, gaining 20.33 percent since the start of the year. The strong performance has been good for investors and could attract even more interest. A $100,000 investment at the beginning of the year would now be worth $120,330—a $20,330 increase.