FBN Holdings Joins 10 Most Capitalised Stocks on NGX
Valued at about N440 billion, FBN Holdings Plc has now joined the ten (10) most capitalised stocks on the Nigerian Exchange, MarketForces Africa stock screening shows. The bank share price closed at N12.1 today following a drop reported from the stock market mid-day report.
An indication emerged that Femi Otedola is behind a massive mop-up of the shares of FBN Holdings, which would result in his becoming the single majority shareholder of the company after N30 billion worth of shares purchased.
Otedola has been acquiring the shares of the bank through a vehicle, Calvados Global Services Limited. It was gathered that Otedola, through his proxies and investing vehicles, now owns over five per cent of the bank, setting himself up to be the single largest shareholder of the bank.
The amount investors now place on the ticker could buy Sterling Bank Plc 10 times in the open market. Sterling Bank as of today is valued at N44 billion.
From the mid-class, the oldest financial institution got its grooves back to joining the league of market movers on the local bourse. The financial service boutique now plays in the league of market movers like Zenith, GTCO etc – though still a mile away.
In the local bourse, investors are pumping money into the financial stocks, with the possibility of a better performance amidst the third-quarter earnings. Today, equity investors gained N31 billion, taking the total market capitalisation higher above N21 trillion.
FBNH has seen an unusually high demand for its shares, a trend some analysts relate with the group profitability prospect and solid dividend payment track record.
MarketForces Africa had reported the sky-high jump in demand for lender’s shares which prompted stock price re-rating amidst the ongoing rally.
FBNH is now worth more than the United Bank of Africa and Access Bank Plc, rising from the bottom of the pyramid. The financial service boutique has now taken a position as the third-largest by market capitalisation in the Tier 1 capital group.
The group is now trailing Stanbic IBTC in terms of market valuation which some analysts predict could outpace if the solid momentum seen is sustained.
From nearly being one of the cheapest stocks despite its size, FBNH shares now trade at N12.40, shows mid-day trading report Friday, from N7.30 earlier in the year, thus outperforming the NGX All-share index per mile.
Equity investors, shareholders in FBNH Plc have popped 70% gain on the stock as analysts look into the future prospect. #FBN Holdings Joins 10 Most Capitalised Stocks on NGX
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