Otedola Acquires N43bn First HoldCo Shares as Stake Rises to 19.35%

Chairman of First HoldCo Plc, Femi Otedola, has increased his stake in the financial services group following the acquisition of additional shares valued at about N43.41 billion on the Nigerian Exchange.

The latest transaction, executed on May 13, 2026, involved the purchase of 549,535,653 ordinary shares at an average price of N79 per share through Calvados Global Services Limited, an investment vehicle linked to the businessman.

Data from the Nigerian Exchange showed that the fresh acquisition increased Otedola’s total holdings in First HoldCo from 8,055,314,486 shares to 8,604,850,139 shares, representing a 19.35 per cent stake in the group’s total outstanding shares of 44.45 billion units.

The development further consolidates Otedola’s influence within the banking group and positions him as the second-largest shareholder in the company, behind RC Investment Management Limited, which currently holds 10.43 billion shares representing a 23.47 per cent stake.

The acquisition triggered heightened investor activity on the Nigerian Exchange, with trading volume on First HoldCo shares rising sharply above 575 million units at the close of trading on May 13, marking the highest single-day trading volume recorded by the stock in 2026.

The transaction also extended the company’s bullish market performance, with the stock’s year-to-date return crossing 57 per cent amid growing investor confidence in the group’s expansion strategy and capital strengthening plans.

The acquisition comes ahead of the company’s Annual General Meeting scheduled for May 29, where shareholders are expected to consider proposals to raise about N253 billion through multiple capital-raising options.

According to the company, the proposed capital raise forms part of broader plans to strengthen its balance sheet and support its long-term ambition of building a N1 trillion capital base, including share capital and premium.

The lender disclosed that the fundraising could be executed through a combination of public offers, private placements, rights issues, bonus issues, or other equity issuance structures, depending on prevailing market conditions and shareholder approvals.

The fresh investment by Otedola also follows the group’s strong financial performance in the first quarter of 2026, with pretax profit rising significantly by 72.2 per cent year-on-year to N321.1 billion from N186.4 billion recorded in the corresponding period of 2025.

The group attributed the earnings growth to stronger interest income generation, improved non-interest revenue, and expansion across core banking operations.

Financial statements released by the company showed that interest income increased to N704.4 billion during the period from N625.2 billion recorded a year earlier.

The bank generated N465.5 billion from loans and advances to customers, while investment securities contributed N192.9 billion and loans to banks added N45.9 billion to total interest earnings.

On the non-interest income side, net fees and commission income rose to N78.9 billion from N64.1 billion, contributing to the improvement in overall operating income and profitability.

The group’s operating profit rose to N320 billion compared to N186.6 billion in the corresponding period of the previous year, reflecting stronger operational efficiency and revenue growth.

Balance sheet performance also remained positive during the quarter, with total equity increasing to N3.4 trillion from N3.3 trillion.

Retained earnings climbed to N667.9 billion from N401.7 billion, strengthening shareholders’ funds and improving the company’s capacity to support future dividend payments and business expansion initiatives.

First HoldCo remains one of the most actively traded stocks on the Nigerian Exchange in 2026, with cumulative trading volume already exceeding 2.4 billion shares since the beginning of the year.

The company currently maintains a market capitalisation above N3 trillion, placing it among the largest listed financial institutions on the Nigerian Exchange.

Industry observers noted that the additional stake acquisition by Otedola may further strengthen shareholder confidence as the group prepares for its next capital raise and broader expansion strategy across Nigeria’s financial services sector.