Big Win for Otedola, Shareholders as FBN Holdings Joins List of Companies Worth N1trn
- FBN Holdings market cap has crossed N1 trillion following the rise in its share price
- The company is now worth N1.06 trillion as it joins MTN, BUA Cement, and others
- Its market shares gained 9.91% to close at N29.4 at the end of the day's trade
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The market capitalization of FBN Holdings, one of Nigeria's oldest banks, has surpassed the N1 trillion mark as it joined the league of stocks worth one trillion in naira.
Source: UGC
Airtel Africa, MTN, BUA Cement, BUA Foods, Seplat, Dangote Cement, Zenith Bank, and GTCO are members of the group.
Big win for FBN Holdings shareholders
The market capitalization of FBN Holdings stood at N1.06 trillion at the close of trade on Wednesday, December 6, 2023, according to data on the Nigerian Exchange.
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The market shares gained 9.91% during the day's trade to close at N29.4 compared to N26.75 the previous day's record.
This also represented a significant gain from the 24.35, which it closed on the week's first trading day.
Recall that Legit.ng reported that Femi Otedola, Nigeria's billionaire, amassed a staggering $8.58 million (N6.8 billion) in one day following the recent wave in the shares of First Bank.
With the new development, the billionaire's stake in the bank has further increased, strengthening his position as one of the wealthiest investors on the NGX.
Continuous gain under Femi Otedola
This accomplishment comes after a week of progress, during which the share price increased by around 10%, according to a BusinessDay report.
Following Femi Otedola's acquisition of a majority share in the bank in 2022, the stock price of FBN Holdings started to rise. This development sparked investor excitement, which resulted in a rush of stock purchases.
When Otedola acquired FBNH, the share price was slightly less than N6. But after the announcement, the stock price has increased fourfold.
Recent financial reports by the company also solidified its position for growth. The holding company reported a 159.2% increase in profit before tax to N236.4 billion in the third quarter of 2023 from the N91.2 billion recorded in the corresponding period in 2022.
Charles Abuede, a financial analyst stated that hitting a trillion naira in market cap is a milestone for companies listed on an exchange. He said that FBNH joins it's counterparts of GTCO and Zenith as the first three Nigerian banks to hit that threshold.
According to him, this paints a nuance of the financial sector in Nigeria as well as paints a bright picture of the confidence level of investors in the bank (FBNH) and the attractiveness of the stock price in the market based on it's valuation metrics.
He added,
"The banking industry in Nigeria has shown resilience over the years and has also been a significant contributor to the Real GDP of Nigeria in the last couple of years."
Otedola continues to fight to consolidate stakes in First Bank with additional N2bn shares acquisition
Legit.ng reported that amid the fight for the control of First Bank of Nigeria Holdings Plc, billionaire businessman and Geregu Power Plant Chairman Femi Otedola has acquired an additional 110 million units of First Bank shares.
The move is said to pitch him against the bank's current majority shareholder, Oba Otudeko, who retook the bank's top shareholding in July in a stormy deal that rattled the industry.
Otedola's newly acquired 110 million units represent 0.3% of the bank's 35,895,292.792 shares.
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Source: Legit.ng
