FBN Holdings Shrinks in Value as Selloffs ‘Heat’ Persist
Investors can now buy FBN Holdings 39.895 billion shares outstanding cheaper as its market value fell below halve of its peak price amidst banking sector recapitalisation.
Ticker: FBNH has seen deliberate selling spree from investors in the past months, causing its market weight to decline sharply. FBNH has seen silent buying in the past, now the table has turned around for the elephant branded financial institution.
During the short trading sessions last week, FBN Holdings plunged further by more than 8% on the Nigerian Exchange (NGX) as selloffs heat persisted.
The lower price or valuation, however, created fresh entry points, an opportunity to buy the financial institution cheaper at about 52% discount to its peak price.
Having spotted this, Femi Otedola, FBN Holdings chairman and majority shareholder in the group increased his stake by splashing N19 billion to acquire more shares on the floor of the Nigerian Exchange last week.
Other investors exited positions amidst banking sector recapitalisation. FBN Holdings is expected to increase its banking arm, First Bank of Nigeria Limited capital base to N500 billion in less than two years.
The elephant branded group would require to raise N250 billion to meet the Central Bank of Nigeria (CBN) new capital requirement by the end of first quarter of 2026.
According to an insider dealing in share notice published on the Nigerian Exchange, Otedola paid N6.934 billion to purchase 316,506,776 at N21.91 per share.
Also, Calvados Global Services Limited, a company related to FBN Holding chairman, splashed more than N12.01 billion to acquire 546,674,034 shares in the financial services company.
During the week, FBNH market value fell below N800 billion, with a widening gap to its peak price. On Friday, the market value of the financial services company declined further, settling at N759.19 billion.
Some analysts said the billionaire investor’s move was to consolidate position as chairman of the Nigerian oldest banking group in the country, given that his rival, Oba Otudeko whose shareholdings had eclipsed Otedola interest.
As market await the group capital raising plan, FBN Holdings is getting cheap to buy as sell pressures continue to create fresh entry point in the financial services group. #FBN Holdings Shrinks in Value as Selloffs ‘Heat’ Persist
