Otedola's First HoldCo stake nears $1B as bank tops Nigeria's most valuable
What's the deal? Nigerian billionaire Femi Otedola has lifted his stake in First HoldCo to 25.87%, worth an estimated N1.47 trillion, or roughly $1 billion, making it one of the largest single-shareholder positions in Nigeria's financial services sector.
What's behind it? The latest purchase, disclosed in a filing to the Nigerian Exchange (NGX) on Thursday, was executed at N124.90 per share through his vehicle, Calvados Global ServicesDealroom has a profile for this one. Try Dealroom → Limited. Combined with 706.13 million shares worth N77.59 billion bought on July 22, Otedola committed nearly N300 billion in fresh capital within a week.
The numbers: First HoldCo's stock has risen 145.90% year-to-date, moving from N105.50 in early July to N119.95 at Thursday's close. That pushed its market capitalisation past N5.5 trillion, overtaking Zenith BankDealroom has a profile for this one. Try Dealroom → at about N4.9 trillion and GTCO at N4.71 trillion to make it Nigeria's most valuable banking stock — and the first to cross the N5 trillion intraday mark.
A stake built in stages: Otedola's accumulation has been methodical. In June 2025 he held 6.68 billion shares, or 15.95%, rising to 20.40% by June 30, 2026, as First HoldCo's issued capital expanded from 41.88 billion to 45.48 billion shares.
Why now? His buying coincided with the bank's recapitalisation. His participation in a N45 billion private placement — the second phase of a N350 billion programme — lifted paid-up share capital to about N525.6 billion, above the Central Bank of Nigeria's minimum for international commercial banks. The bank plans to raise about N221 billion more, targeting N1 trillion.
What could go wrong? Otedola's stake keeps him just below Nigeria's 30% mandatory takeover threshold. Under the Investments and Securities Act of 2025 and Securities and Exchange Commission rules, any investor crossing that level must launch a mandatory takeover offer to minority shareholders, unless granted an exemption.
The signal: The re-rating extends beyond one company. Most listed Nigerian banks have long traded below book value despite strong profits, weighed by foreign exchange volatility and governance concerns. First HoldCo now trades at about 1.7x book value, with return on average equity near 30% — closer to leading African banking groups than domestic peers.
Read more: businessday.ng
Image credit: Generated with Gemini
