Billionaire investor and chairman of First HoldCo, Femi Otedola, has significantly increased his stake in the financial services group after acquiring 680 million additional shares in a private placement valued at about N29.6 billion.
The latest transaction raises Otedola’s controlling interest in the institution to 20.42 percent, further cementing his position as one of the dominant shareholders in Nigeria’s leading banking group.
The shares were acquired at N44 per unit through a private placement arrangement, a discount to the company’s Thursday closing price of N61 in the capital market. The offer was part of First HoldCo’s broader fundraising exercise targeted at strengthening its capital base.
A source familiar with the deal confirmed that the transaction was largely concentrated among a few investors, with Otedola and another institutional shareholder taking up the bulk of the offer.
“The private placement has been completed and Mr. Otedola acquired about 680.8 million shares investing about N30 billion in the bank (Holdco). Another institutional investor who is a shareholder acquired most of the rest,” the source said.
The development comes as First HoldCo continues its capital restructuring programme aimed at meeting regulatory expectations and supporting long-term expansion plans. Following the completion of the private placement, the company’s share capital has reportedly risen to N525.6 billion, surpassing the Central Bank of Nigeria’s minimum capital requirement of N500 billion.
The move is also part of a wider recapitalisation strategy involving a N350 billion private placement programme designed to inject fresh funds into First Bank of Nigeria Limited, the group’s flagship subsidiary. The funds are expected to strengthen the bank’s balance sheet and support growth across key business segments.
Market watchers note that Otedola has steadily increased his exposure to the institution over time. In May, he acquired 549.53 million shares worth N43.41 billion through his investment vehicle, Calvados Global Services Limited, marking another major step in his long-term investment strategy within the banking sector.
With the latest acquisition, his total shareholding is estimated at about 9.29 billion shares, underscoring his growing influence within the group’s ownership structure.
First HoldCo’s ongoing capital raising efforts are part of an ambitious plan to build a N1 trillion capital base. At its 14th Annual General Meeting held in May, shareholders approved proposals to raise up to N253.09 billion through a mix of public offers, private placements, rights issues, bonus issues, scrip dividends, and other equity instruments across both domestic and international markets.
The strategy reflects the company’s push to position itself more competitively in Nigeria’s evolving banking landscape, where recapitalisation and consolidation have become central themes in recent regulatory reforms.