First Holdco Slumps 20% as Investors’ Sentiment Deteriorates

First Holdco Slumps 20% as Investors’ Sentiment Deteriorates

First Holdco Plc experienced significant sell-offs and lost more than 20% of its market value as investor sentiment deteriorated amidst the Chairman’s increased holdings.

Its share price declined to N55 from N69 at the beginning of the week, with significant trading volume, as investors sought to exit their positions ahead of a compliance-driven capital raise.

First Holdco’s market capitalisation declined by N622.351 billion week on week, closing at N2.444 trillion, trading below its highest valuation on NGX over the past 52 weeks.

The ticker is trading at about 33% below its 52-week high.

The sell-side actors’ activities aligned with broader market sentiment, given a sharp decline in the Nigerian Exchange (NGX) All-Share Index in the last five trading sessions.

The elephant-branded financial company’s key man risk has increased as Femi Otedola, its chairman, stepped up his total holdings above 20% amid efforts to meet the regulator’s capital adequacy requirements.

It appears that only the First HoldCo chairman is buying to keep, as the share price trades about 33% below its 52-week high, reflecting significant volatility amid heavy trading volume.

Market analysts said large-ticket investors could find First HoldCo uninteresting due to its shareholding concentration, which could limit long-term positioning. 

Recently, First HoldCo Plc notified the Nigerian Exchange Limited (NGX), its shareholders, and the investing public that it has successfully completed the ₦45 billion second tranche of its ongoing ₦350 billion Private Placement programme.

The financial services group said the proceeds will be injected into First Bank of Nigeria Limited, the Group’s flagship subsidiary, as part of its capital restoration plan and broader balance sheet strengthening programme.

In the disclosure, the Holdco said that beyond regulatory compliance, this injection positions FirstBank to pursue its strategic growth agenda with greater confidence.

It strengthens the Bank’s capacity to deepen quality lending, expand digital and transaction banking capabilities, accelerate customer franchise momentum, and capture opportunities across corporate, commercial, retail, and cross-border banking markets, while maintaining prudent capital management.

Following the successful completion of this second tranche of the ₦350 billion Private Placement programme, FirstHoldCo said it remains committed to raising the outstanding ₦221 billion. Overall, the Company plans to boost its paid-up share capital to ₦1 trillion. First HoldCo: Weak Earnings, No Dividend Make Uncomfortable Shareholders