Femi Otedola Raises First HoldCo Stake to 20.4% After N29.6bn Share Acquisition

Chairman of First HoldCo, Femi Otedola, has increased his ownership stake in the financial services group to 20.42 percent after acquiring 680.8 million additional shares worth approximately N29.6 billion.

The shares were purchased through a private placement in which First HoldCo offered shares at N44 each, below Thursday's closing market price of N61.

According to a source familiar with the transaction, Otedola and another institutional investor acquired about 90 percent of the N45 billion worth of shares offered in the private placement.

"The private placement has been completed and Mr. Otedola acquired about 680.8 million shares, investing about N30 billion in the HoldCo. Another institutional investor who is already a shareholder acquired most of the remaining shares," the source said.

Following the successful capital raise, First HoldCo's share capital has increased to N525.6 billion, surpassing the N500 billion minimum capital requirement set by the Central Bank of Nigeria (CBN) for banks.

The latest transaction forms part of First HoldCo's ongoing N350 billion private placement programme, aimed at recapitalising its flagship subsidiary, First Bank of Nigeria Limited (FirstBank), strengthening its balance sheet, and meeting new regulatory capital requirements.

Otedola has steadily increased his investment in the company over the past year. In May, he acquired 549.53 million shares valued at N43.41 billion through his investment vehicle, Calvados Global Services Limited.

With the latest acquisition, his total shareholding has risen to approximately 9.29 billion shares, further cementing his position as the company's largest shareholder.

First HoldCo is targeting a N1 trillion capital base as part of its long-term growth strategy.

At the company's 14th Annual General Meeting (AGM) in May, shareholders approved plans to raise up to N253.09 billion through a combination of public offers, private placements, rights issues, bonus issues, scrip dividends, and other equity instruments in both domestic and international markets.