Otedola loses N1.49bn as demand for First Bank’s shares drop

The billionaire businessman, Femi Otedola, suffered mixed fortunes in the Nigerian capital market following the drop in his investment in First Bank Holdings by -6.35 percent.

He, however, posted a 20.9 percent growth in his investment in Geregu Power during the period.

Analysis of Otedola’s investment during trading on December 29 showed that he lost N1.49 billion after the demand for First Bank’s shares dropped in the capital market.

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Trading in First Bank’s shares closed on Wednesday at N11.8kobo per share, the same share value achieved by the lender last Friday.

But the share value dropped due to a sell-off in the capital market on Thursday, causing investors holding First Bank shares to lose N26.9 billion.

This brought down the value of Otedola’s investment in First Bank from N23.59 billion to N22.09 billion while FBN Holdings’ total market value fell from N423.56 billion to N396.64 billion at the close of trading.

However, while Otedola lost -6.35 percent of his investment in First Bank, his investment in Geregu went up by 20.9 percent.

It was gathered that shareholders of Geregu Power made a whopping N60.5 billion after investors renewed their interest in the electricity company.

The demand for Geregu’s share in the stock market pushed up its stock value from N115.5 kobo to N139.7 kobo per share.

As a result of high investor demand, Geregu’s valuation in the stock market increased from N288.75 billion to N349.25 billion within two days.