Billionaire investor and Chairman of First HoldCo Plc, Femi Otedola, has strengthened his position in Nigeria’s banking industry after acquiring an additional 1.779 billion ordinary shares in First HoldCo, a transaction valued at approximately N222.2 billion.
The latest acquisition, disclosed in a regulatory filing submitted to the Nigerian Exchange, raises Otedola’s total beneficial ownership to 11.76 billion ordinary shares, representing 25.87% of the company’s issued share capital.
At the acquisition price of N124.90 per share, Otedola’s investment in First HoldCo is now valued at approximately N1.47 trillion, or about $1 billion, making it one of the largest individual holdings in Nigeria’s financial services sector listed on the Nigerian Exchange.
The investment comes just days after Calvados Global Services Limited, an entity linked to Otedola, purchased 706.13 million shares worth N77.59 billion.
Together, the two transactions represent fresh investments approaching N300 billion within a little over one week, reinforcing confidence in First HoldCo’s long term growth prospects.
Otedola Doubles Down on First HoldCo
According to the regulatory filing, Otedola acquired 1,779,094,976 ordinary shares at N124.90 each, bringing his total shareholding to 11,763,018,192 shares.
The latest purchase significantly expands his influence within the financial institution and further strengthens his position as First HoldCo’s largest shareholder.
Based on the company’s closing market price, the value of his stake has climbed to approximately N1.47 trillion, reflecting both continued share accumulation and the remarkable appreciation in the company’s stock price.
First HoldCo’s Strong Market Performance
The acquisition coincides with an exceptional rally in First HoldCo’s share price. Over the past month, the stock has gained more than 120%, making it one of the best performing large capitalization companies on the Nigerian Exchange.
The sharp rise has also renewed investor discussions around the valuation of Nigerian banking stocks. Although many Nigerian banks continue to trade below their book value despite strong profitability, First HoldCo has moved against that trend.
The company is now trading at approximately 1.7 times its book value, supported by an annualised Return on Average Equity of about 30%, bringing its valuation closer to leading pan African banking institutions.
Growing Speculation Over Long Term Strategy
Otedola’s latest investment has intensified market speculation regarding his long term ambitions for First HoldCo.
With ownership now standing at 25.87%, he has moved closer to holding more than one quarter of Nigeria’s oldest banking group.
Market sources previously told Nairametrics that Otedola could ultimately pursue a 51% controlling stake in the company. However, the report remains unverified, and neither Otedola nor First HoldCo has publicly confirmed any intention to increase ownership to that level.
If such a position were eventually achieved, it would provide Otedola with significant influence over one of Nigeria’s largest financial institutions.
A Familiar Investment Strategy
The latest transaction reflects Otedola’s long established investment approach of building substantial ownership positions in businesses where he can exercise strategic influence.
Before gradually reducing his stake in Geregu Power Plc, he controlled approximately 78% of the power generation company.
Unlike many publicly listed firms with concentrated ownership structures, First HoldCo continues to maintain a relatively diversified shareholder base. That structure leaves room for additional market purchases, subject to regulatory approvals and disclosure requirements.
As investor confidence in Nigeria’s banking sector continues to improve, Otedola’s latest multibillion naira investment further positions First HoldCo as one of the market’s most closely watched financial institutions.
