Nigerian billionaire Femi Otedola takes First HoldCo shares worth over $30 million at nearly 40% discount

Nigerian billionaire Femi Otedola has drawn fresh attention on the Nigerian Exchange (NGX) after acquiring new shares of First HoldCo Plc valued at over $30 million in a recent private placement executed at a discount of nearly 40 percent to the prevailing market price. The transaction underscores his expanding position in the parent company of FirstBank of Nigeria, the country’s oldest lender, as he deepens exposure to a financial group that is in the middle of a broad capital strengthening program.

The investment came through a N45 billion ($33.1 million) private placement completed by First HoldCo, priced at N44.06 ($0.03) per share, with proceeds directed toward reinforcing FirstBank’s capital base and expanding balance sheet capacity. The issuance represents the second tranche of a wider N350 billion ($257.2 million) private placement program, which has secured approvals from both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). Following the capital raise, First HoldCo’s share capital rose to about N525.6 billion ($390 million), placing it above regulatory minimum requirements.

Otedola raises First HoldCo stake to 20.42%

Otedola acquired 672.9 million shares of First HoldCo Plc, paying N29.6 billion ($21.8 million), further consolidating his position as the group’s largest shareholder. The pricing of the placement at N44 ($0.03) per share reflected a discount of approximately 38.5 percent to the closing market price of N60.5 ($0.04) per share recorded on Thursday, June 18.

The latest purchase lifts Otedola’s holding from 8,604,850,139 shares, representing a 19.36 percent stake as of May 13, when he previously acquired 549,535,653 shares through his investment vehicle Calvados Global Services Limited, to 9,285,739,834 shares, equivalent to roughly 20.42 percent. The increase further strengthens his influence within First HoldCo and extends his role as the largest shareholder in the financial services group.

First HoldCo eyes N1 trillion capital 

The completion of the tranche adds another layer to First HoldCo’s capital program, which management says is aimed at strengthening the bank’s financial resilience, expanding balance sheet capacity, and supporting long-term competitiveness. The program was approved at the company’s 13th Annual General Meeting held on May 22, 2025, with shareholders also authorizing a broader N350 billion capital plan, of which N221 billion ($162.4 million) remains to be raised as the group targets a paid-up share capital of N1 trillion ($735.25 million).

The capital actions are unfolding alongside a period of improved financial performance. For the first quarter of 2026, First HoldCo reported profit before tax of N321 billion ($236 million), representing a 72.2 percent increase year on year. Gross earnings rose 27 percent over the same period, supported by growth in both interest income and non-funded revenue streams. The group also reported customer deposits of N18.4 trillion ($13.5 billion).

Capital raise Strengthens balance sheet

Commenting on the capital raise, First HoldCo Chairman Femi Otedola said shareholders had continued to demonstrate confidence in the group’s direction and governance framework. “We are deeply grateful to our shareholders for their continued confidence and support, demonstrated both in the successful completion of this capital raise and in their gracious approval at the 14th Annual General Meeting held on May 29, 2026, for the additional capital to be raised to take the paid-up capital of FirstHoldCo to N1 trillion ($735.25 million),” he said. “Their support reflects a shared conviction in the strength of our franchise, the resilience of our business model, and the significant opportunities ahead for FirstHoldCo.”

Group Managing Director Wale Oyedeji described the transaction as a strong endorsement of the company’s strategic direction. “The successful completion of this N45 billion ($33.1 million) tranche is a strong endorsement of FirstHoldCo’s strategic direction, franchise strength, and the confidence investors continue to place in our long-term value proposition,” he said. “This injection into FirstBank is both timely and strategic. It further strengthens the bank’s capital base, enhances balance sheet capacity, and positions the franchise to accelerate growth across key businesses while remaining anchored on prudence, resilience, and disciplined execution.”