2019 has come and gone, leaving behind memories that might never be erased. In the Nigerian equity market, the year was not a very good one for many investors. As Nairametrics reported, the NSE All-Share Index ended the year with a 14.6% loss.
Related findings by Nairametrics Research also disclosed that the end of 2019 marked the worst performance by the Nigerian stock market in the last three decades.
While we sympathise with all the regular retail investors who might still be counting their losses, our focus is mainly on billionaire investors in the capital market. Note that these billionaires are majority shareholders in some of the biggest companies listed on the Nigerian Stock Exchange. How did their portfolios fare in the course of 2019?
Comparisons and calculations
To answer this question, we did some comparisons and calculations. The paper values of these billionaires’ shareholdings in various companies were compared by multiplying their shareholdings by the stock price of their companies on a year-on-year basis.
For the sake of clarity, let us first list out the names of the companies where the billionaires have shareholdings, along with their comparable share prices on a year-on-year basis.
- United Bank for Africa Plc: The share price stood at N7.85 at the end of 2018, compared to N7 in December 2019.
- Zenith Bank Plc: This tier-one bank ended 2018 with a share price of N23. However, by the end of 2019, the share price had fallen to N18.40.
- Access Bank Plc: Surprisingly, the Access Bank stock was a top performer in 2019, closing the year with share a price of N9.95 as against N6.80 during the comparable period in 2018.
- Seplat Petroleum Development Company Plc: This oil and gas major closed 2018 with a share price of N592.50. As of 2019 year-end, the company’s share price stood at N549.70.
- Conoil Plc: Similarly, Conoil’s share price at the end of 2019 dropped to N18.50 compared to N23.25 which was recorded at the end of 2018.
- Dangote Cement Plc: Share price as at December ending, 2018 was N183, compared to share price of N140 in December 2019.
- Cement Company of Northern Nigeria Plc: Share price at the end of 2018 was N19.95. This is more than the N18.10 with which the company share price ended 2019.
- Dangote Sugar Refinery Plc: N15.25 in December 2018 compared to N13.80 in December 2019.
- Nascon Allied Industries Plc: The company’s share price at the end of 2018 was N18. By the end of 2019, it had dropped to N12.90.
- MRS Oil Nigeria Plc: At the end of 2018, the company’s share price was N25.70. Fast-forward to December 27th, 2019, it had dropped to N15.30.
- May & Baker Nigeria Plc ended 2018 with a share price of N2.45. As at December 27th, 2019, it was N1.93.
Focus on the billionaires and their portfolios
We shall now focus on how the changes in these companies’ share prices influenced the valuation of the shares held by the billionaires listed below.
Tony Elumelu is a billionaire businessman and philanthropist who is most notable for being the Chairman of United Bank for Africa Plc. According to information obtained from the company’s recent audited financial report, Elumelu owns a total of 189,851,584 units of direct shares in UBA. He also owns a total of N2,045,354,576 units of indirect shareholding in the company. This brings his total shareholding to 2,235,206,160 units of shares.
When we multiplied by UBA’s share price of N7.85 as at December 2018, we found that the paper value of Elumelu’s shareholding in the company stood at N17.5 billion. However, when we multiplied the same units of shares by UBA’s 2019 year-end share price of N7, we got N15.6 billion.
What this means is that the value of Tony Elumelu’s shareholding declined by as much as N1.9 billion in 2019.
Information available in Zenith Bank’s audited financial report states that Mr Ovia (who currently serves as the company’s Chairman) holds a total of 5,059,336,405 units of direct and indirect shareholding. This makes him the biggest shareholder in the company, and one of Nigeria’s top billionaires.
Multiplying Jim Ovia’s total shareholding by N23 gave us N116.4 billion. A similar multiplication using the company’s 2019 year-end share price gave us N93 billion.
This means that the value of Jim Ovia’s shareholding in Zenith Bank reduced by N23.4 billion in 2019.
The total units of shareholding belonging to Access Bank’s Group CEO, Herbert Wigwe, stands at 1,441,522,910. This is according to information obtained from the company’s financial report. When multiplied by N6.80, this gave us N9.8 billion. We also multiplied the same units of shares by N9.95 and got N14.3 billion.
What this means is that the value of Wigwe’s shareholding increased by some N4.5 billion.
Globally acclaimed businessman, Alhaji Abdulsamad Rabiu, is the Non-Executive Chairman of the Cement Company of Northern Nigeria Plc (CCNN). The billionaire owns a total of 12,752,801,231 shares in the company. At a share price of N19.95 which the company recorded at the end of 2018, the value of Alhaji Rabiu’s shareholding in the company stood at N254.4 billion.
However, that amount had dropped by December 2019, due to the decline in the company’s share price. As noted above, CCNN’s share price stood at N18.10 as at December 27th last year. When we multiplied Alhaji Rabiu’s 12,752,801,231 units of shares by N18.10, we got N230.8 billion.
This means that the billionaire lost a whopping N23.6 billion last year.
Seplat’s outgoing Chief Executive Officer, Austin Avuru, owns a total of 70,823,139 units of shares in the oil and gas company. When multiplied by N592.50 with which the company ended in 2018, the monetary value of Mr Avuru’s shareholding was N41.9 billion. By the end of 2019, his share value had reduced to N38.9 billion, meaning that he lost about N3 billion last year.
Mike Adenuga is the Chairman of Conoil Nigeria Plc and he has personal shareholdings in the company to the tune of 103,259,720 units of shares. He also has some 516,298,603 units of indirect shares through Conpetro Limited in Conoil Plc which owns 74.40% of Conoil’s issued share capital.
In total, Mike Adenuga owns 619,558,323 units of shares. This multiplied by Conoil’s share price of N23.25 at the end of 2018, amounted to N14.4 billion.
As at December 27th, 2019, the company’s share price was N18.50, meaning that the value of Mr Adenuga’s shareholding in the company dropped to N11.5 billion. In all, the billionaire lost N2.9 billion in 2019.
Retired Lieutenant General Danjuma, who currently serves as the Chairman of drug-manufacturing company, May & Baker Nigeria Plc, owns some 43.28% of the company’s entire issued share capital. The shareholding, all indirectly held by the billionaire, can be broken down thus:
- T.Y Holdings Ltd: 720, 878, 543
- Oil Tech Nigeria Ltd: 14, 874, 759
- Osis Yuvic Ltd: 11, 088, 000
These numbers sum up to 746, 841, 302 units of shares. We multiplied this by the N2.45 share price with which the company ended 2018 and got N1.8 billion. We also multiplied Danjuma’s total units of shares by the N1.93 share price with which the company ended in 2019 and got N1.4 billion. From the foregoing, Lieutenant Danjuma lost some N388 million last year.
Alhaji Aliko Dangote owns 85% majority shareholding in Dangote Cement Plc through Dangote Industries Limited. The total units of shares he owns in the company amount to 14,484,431,294 shares. Multiplied by the company’s share price of N184 at the end of 2018, we have N2.7 trillion. When also multiplied by the company’s share price of N140 at the end of 2019, Dangote’s share value stood at N2.0 trillion. Subtract N2.0 trillion from N2.7 trillion, then we have N700 billion, representing how much value the billionaire lost in the course of last year.
Dangote International Limited also owns about 68% of Dangote Sugar Refinery Plc’s issued shares. This amounts to some 8.16 billion units of shares. Multiplied by N15.25 with which the company’s share price ended 2018, we got N124.4 billion. The same units of shares multiplied by N13.80 with which the company’s share price ended 2019, gave us N112.6 billion.
It should be noted that Aliko Dangote also directly holds some 635,095,014 units of shares which translated to N9.7 billion when multiplied by N15.25. The same units of shares multiplied by N13.80 million translated to N8.8 billion.
Collectively, the share value of Dangote’s collective holding in Dangote Sugar Plc back in 2018 was N134.1 billion. As of December ending 2019, that value had dropped to N121.4 billion, thereby indicating that the value reduced as much as N12.7 billion.
Aliko Dangote indirectly has a 62.19% stake in NASCON Allied Industries Plc through Dangote Industries Limited, amounting to 1,647,763,557 units of shares. In the same vein, Aliko Dangote holds a direct stake of 635,095, 014 shares valued at N13.6 billion, bringing his total shareholding in the company to 2,282,858,571.
Dangote’s total units of shares in NASCON Allied, multiplied by the company’s share price of N18 in December 2018, gave us N41 billion. When we multiplied the same amount of shares by a share price of N12.90 with which the company ended last year, we got N29.4 billion. N41 billion minus N29.4 billion equaled N11.6 billion.
From the foregoing, it can be seen that the paper value of Aliko Dangote’s entire shareholdings in Dangote Cement, Dangote Sugar, and NASCON Allied collectively reduced by a whopping 724.3 billion.
Note that we did not calculate the value of Alhaji’s shareholding in his flour business because of the recent acquisition of Dangote Flour Mills Plc by Olam.
NOTICE: A big thank you to all the readers who called our attention to some of the mathematical errors in this piece. The errors have now been rectified and the corrections effected.
Elon Musk surpasses Bill Gates’ wealth, now worth $128 billion
Elon Musk has just hit a new apex by surpassing Bill Gates to become the world’s second-richest person.
The founder of the most sought automaker company Elon Musk has just hit a new apex by surpassing Microsoft, founder, Bill Gates to become the world’s second-richest person.
Data retrieved from the Bloomberg billionaire index shows the 49-year-old whiz entrepreneur net worth is now pegged at $128 billion, driven by yet another surge in Tesla’s share price.
Musk has gained $100.3 billion to his net worth just in 2020, the most by anyone in the Bloomberg Billionaires Index – a ranking of the world’s 500 richest people.
What you must know: Musk is the CEO of Tesla, a maker of electric vehicles. The California-based company sells electric vehicles. He’s also CEO of Space Exploration Technologies, a rocket manufacturer tapped by NASA to resupply the space station
His wealth gain is largely attributed to Tesla, the electric car automaker, which has gained 500% in 2020 and has become by far the world’s most valuable automaker in the world, despite it producing far less than Volkswagen, Toyota, or General Motors.
About a fifth of the car company’s shares is owned by its Chief Executive, Elon Musk, and other insiders.
Recall Nairametrics, some months ago highlighted major reasons why Nairametrics believed the stock was a strong buy and could surpass the present most valuable listed technology company.
- Tesla was founded in 2003 by a group of engineers who wanted to prove that people didn’t need to compromise to drive electric – that electric vehicles can be better, quicker, and more fun to drive than gasoline cars.
- Today, Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products. Tesla believes the faster the world stops relying on fossil fuels and moves towards a zero-emission future, the better.
- Tesla remains the only major carmaker to have a huge physical presence in the world’s second-largest economy. With the electric-car maker’s launch of a new factory in China in 2019 and, the beginning of its Model Y models earlier this year, investors may want to continue holding.
Billionaires that can triple the value of Bitcoin
Michael Saylor has disclosed billionaires who could turn the price of Bitcoin up, at least three folds.
The Founder and Chief Executive officer of the popularly traded business intelligence firm, Michael Saylor, recently disclosed billionaires, who could turn the price of Bitcoin up at least three folds. His bias was based on the aurora these billionaires bring notably in the global financial world.
In his most recent Youtube interview, he started his narrative by explaining deeply the effect such billionaires would have on the flagship crypto market,
“It’s important that 100 million people embrace Bitcoin but there are 10 people that can triple the price of Bitcoin. This is not like Facebook, nobody ever brought a billion friends to Facebook. This is like when a person with $10 billion decides that they want to adopt this network and they put $2 or $3 billion on the network, that’s going to be more monetary energy that flowed into the network than the first 10 million people put into the network. It’s ten million to one gain.”
He went on by revealing the names of such billionaires, amid their stronghold seen on global finance.
“Here’s the other thing. When a person with $10 billion puts $10 billion on the network, they’ve got a friend with $10 billion. Warren Buffett (Berkshire Hathaway CEO) plays bridge with Bill Gates (Microsoft founder) and then they talk with Mark Zuckerberg (Facebook CEO and founder).
“So when this hits that social network, it’s like a billion to two billion to four billion to eight billion and those four decisions, those four blocks have more impact on the network than the first 10 million blocks.”
What you should know
Sequel to these macro, Nairametrics some days ago revealed key insights coming from DeVere Group discovering that 73% of poll participants (millionaires) are now already invested or are preparing to invest in digital assets, such as Ethereum, Bitcoin, and XRP, before the end of 2022, showing a significant amount of interest by the world’s top earners.
- The findings come as the price of Bitcoin rallied close to $18,000, almost close to the $19,763 all-time record reached in December 2017.
- Most of the high net worth individuals polled by the financial firm got triggered into planning to buy cryptos by the latest institutional buying.
- Those classified as millionaires in the study include ‘High Net Worth’ having more than £1m (or equivalent) in investable assets.
Many millionaires plan to buy Crypto before 2022
DeVere Group, a financial consulting firm discovered that 73% of poll participants are now already invested or are preparing to invest in digital assets.
As Bitcoin hits the flagship crypto trade slightly below $18,000, a significant number of millionaires have disclosed they will invest in cryptos before the end of 2022.
DeVere Group, one of the world’s most notable independent financial advisory firms, discovered that 73% of poll participants are now already invested or are preparing to invest in digital assets, such as Ethereum, Bitcoin, and XRP, before the end of 2022.
- The findings come as the price of Bitcoin rallied close to $18,000, almost close to the $19,763 all-time record reached in December 2017.
- The methodology for such research used include, interviewing over 700 of its clients who are presently based in Asia, Africa, the Middle East, United States, United Kingdom, East Asia, Latin America, Australasia.
- Those classified as millionaires in the study include ‘High net worth’ having more than £1m (or equivalent) in investable assets.
What this means
DeVere Group CEO and founder, Nigel Green, explained why the world’s millionaires are attracted to financial assets as cryptos.
“As the survey shows, this impressive performance is drawing the attention of wealthy investors who increasingly understand that digital currencies are the future of money and they don’t want to be left in the past,” he said.
Most of the high net worth individuals polled by the financial firm got triggered into planning to buy cryptos by the latest institutional buying.
“No doubt that many of these HNWs, who were polled, have seen that a major driver of the price surge is the growing interest being expressed by institutional investors, who are capitalizing on the high returns that the digital asset class is currently offering,” Green added.
Explore Data on the Nairametrics Research Website