Otedola raises First HoldCo stake to 20% after N29bn share purchase

Businessman Femi Otedola has increased his stake in First HoldCo after acquiring 680 million additional shares valued at about N29.6 billion, pushing his total holding in the company to 20.42 percent.

The acquisition was carried out through a private placement where shares were offered at N44 each, below the company’s Thursday closing price of N61, attracting strong interest from key investors.

According to sources familiar with the transaction, Otedola and another institutional investor accounted for about 90 percent of the N45 billion worth of shares offered in the placement. The businessman alone reportedly invested nearly N30 billion in the deal.

Following the latest transaction, First HoldCo’s share capital has risen to N525.6 billion, exceeding the Central Bank of Nigeria’s (CBN) minimum capital requirement of N500 billion for financial institutions.

The private placement forms part of the company’s ongoing N350 billion capital raising programme aimed at strengthening its balance sheet and supporting its subsidiary, First Bank of Nigeria Limited.

This marks another major investment by Otedola, who in May acquired over 549 million shares worth about N43.41 billion through his investment vehicle, Calvados Global Services Limited.

With the latest purchase, his total shareholding has risen significantly, reinforcing his position as a major controlling investor in the financial group.

The broader capital raising initiative is part of First HoldCo’s plan to achieve a N1 trillion capital base. The plan was approved by shareholders at the company’s 14th Annual General Meeting, allowing the firm to raise funds through a mix of public offers, rights issues, private placements, bonus issues, and other equity instruments in both domestic and international markets.