Otedola lifts First HoldCo stake to 20% in N45bn raise
Femi Otedola has increased his stake in First HoldCo to 20.4% via a discounted private placement, pushing the Nigerian lender past Zenith Bank to become the country's most valuable bank.
Billionaire investor Femi Otedola has acquired a 20.42% stake in First HoldCo Plc, the parent company of FirstBank, following the group’s N45 billion private placement. The investment saw Otedola pick up roughly 672.9 million shares at N44.06 each, committing approximately N29.6 billion to the transaction.
The purchase was executed at a 38.5% discount to the prevailing market price of N60.50 at the time. This strategic entry point allowed the billionaire to significantly expand his footprint just before the current rally accelerated. Investors are actively rewarding Nigerian banks undertaking capital raises to meet new regulatory thresholds.
First HoldCo shares surged to a record N105.50 on the Nigerian Exchange on Monday, trading at full bid. At this price, Otedola’s holding is valued at around N980 billion, or more than $710 million. The paper value of his investment has effectively doubled since early July, a gain of roughly $357 million, pushing his estimated net worth above $2 billion.
Otedola has steadily built his position over the past year while the company expanded its issued share capital from 41.88 billion to 45.48 billion shares. His combined direct and indirect holdings stood at 15.95% as of June 2025 before climbing to 18.12% by March 2026. By June 2026, his indirect holdings saw sharp growth, rising to 6.03 billion shares from 4.80 billion three months prior.
The placement is the second phase of a broader N350 billion recapitalisation programme sanctioned by the Central Bank of Nigeria and the Securities and Exchange Commission. First HoldCo’s paid-up capital now stands at N525.6 billion, comfortably clearing the new minimum requirement for international commercial banks. The group aims to reach N1 trillion in paid-up capital, meaning it still needs to raise about N221 billion.
For market participants, the capital drive directly translates to enhanced lending capacity and stronger balance sheets. This fundamental improvement, coupled with anticipation of robust half-year earnings, has driven a sharp re-rating of the stock. First HoldCo now commands a market capitalisation of approximately N4.80 trillion, narrowly overtaking Zenith Bank at N4.79 trillion and Guaranty Trust Holding Company at N4.71 trillion to become Nigeria’s most valuable bank.
