First HoldCo hits record high N87.25, market cap reaches N3.83 trillion
First HoldCo surged to a record N87.25 per share, becoming Nigeria's third-largest bank by market value as institutional investors bet on improving profitability and capital returns.
First HoldCo shares touched an all-time high of N87.25 during intraday trading, pushing the company’s market capitalization to approximately N3.83 trillion. The price surge establishes the financial institution as the third-largest bank on the Nigerian Exchange by market value, trailing only GT HoldCo and Zenith Bank.
The bank's stock has now more than doubled in value over the past twelve months. This exceptional rally has significantly outperformed the broader NGX All-Share Index as well as the NGX Banking Index. While the wider Nigerian equity market has experienced periods of volatility, First HoldCo has decoupled from these broader trends to deliver sustained returns for its shareholders.
Underpinning this price action is a wave of institutional buying. Market participants have continued to accumulate shares following the company's successful private placement. Investors are essentially positioning their portfolios ahead of expected improvements in the bank's core financial metrics, specifically anticipating stronger profitability, enhanced capital adequacy ratios, and higher shareholder returns in the coming quarters.
Valuation Premium Signals Confidence
The sustained demand has pushed First HoldCo’s earnings multiple to 15.9 times, marking it as one of the most expensive banking stocks in the local sector. For market professionals, this premium valuation is significant. It indicates that the market is not merely rewarding past performance but is pricing in a robust long-term growth strategy and expectations of continued earnings upgrades.
First HoldCo’s ascent to a nearly N4 trillion valuation alters the competitive landscape within Nigeria's financial sector. The valuation gap between the lender and its top-tier peers is narrowing, reflecting a shift in institutional capital allocation. For portfolio managers tracking emerging market banks, the stock's resilience and premium pricing suggest strong conviction in the company's strategic trajectory, even as broader macroeconomic headwinds persist in Nigeria.
