FirstHoldco Plc shares drop 7.2% amid Otedola share accumulation

FirstHoldco Plc shares declined by approximately 7.2% to N129.50 on Friday, following news that group chairman Femi Otedola increased his holdings through Calvados Global Services Limited. The stock market re-rating and subsequent profit-taking by investors caused the company’s market capitalization to drop by N457 billion, falling below N6 trillion.

This volatility occurs amid ongoing scrutiny regarding Geregu Power Plc’s N40.09 billion Series 1 Senior Unsecured Bond default. The company failed to meet a N6 billion repayment due in July 2026. While Senator Abdulaziz Yari, the new Chairman of Geregu, recently provided N6 billion to settle outstanding obligations, market analysts have raised concerns regarding the use of funds from Geregu. There are allegations that proceeds from Geregu may have contributed to the significant price appreciation of First Bank shares, which rose from N21.70 in late 2024 to N129.95 recently. Femi Otedola recently met with Senator Yari in Monaco amid these market concerns and the perceived silence of the Securities and Exchange Commission (SEC) regarding the bond crisis.