First HoldCo hits record N87.25 as market value crosses N3.8 trillion

Shares of First HoldCo Plc climbed to an all-time high of N87.25 during trading on the Nigerian Exchange (NGX) on Thursday, pushing the financial services group’s market capitalization above N3.8 trillion for the first time in its history.

The rally cements First HoldCo’s position as one of the Nigerian Exchange’s best-performing banking stocks this year, extending a remarkable run that has seen investors continue to accumulate the stock despite broader market volatility.

At N87.25 per share, the company’s market capitalization now stands at approximately N3.83 trillion, making it one of the largest financial institutions by market value on the Nigerian Exchange. Only GT HoldCo and Zenith Bank currently have higher market valuations.

The build-up to the rally traces back to a sustained buying campaign by Chairman Femi Otedola, who has spent much of 2026 tightening his grip on the group he has led since January 2021. Otedola raised his stake to 18.12% in early 2026 after adding 3.82 billion shares — a year-on-year increase of over 90% (Nairametrics) — according to First HoldCo’s 2025 financial statement, filed on the NGX in late January.

What the data is saying:

First HoldCo shares touched N87.25 in intraday trading on Thursday and held firm till close, setting a new all-time high and surpassing its previous record.

• Share price rose to N87.25, gaining 9.96% on the day.
• Month-to-date, the stock has gained 55.66%, rising from N56.05 on June 30 to N87.25 at Thursday’s close.
• Year-to-date, the stock has more than doubled from its N47.90 opening price in January 2026, defying a broader market pullback in June and early July that wiped out nearly N13 trillion in NGX value.
• Trading volume on July 16 reached 37.68 million units, following a record 1.26 billion units traded on July 9 alone — the heaviest single-day volume in the stock’s history.

The rally means First HoldCo has now more than doubled in value over the past year, significantly outperforming both the NGX Banking Index and the broader All-Share Index. It is now trading at an earnings multiple of 15.9x — one of the highest in the sector.

The latest milestone comes amid sustained investor demand following the company’s recently concluded private placement, improving earnings momentum, and growing optimism over Otedola’s long-term capitalization strategy.

The stock has also benefited from heavy institutional participation, with investors positioning ahead of expected improvements in profitability, capital adequacy, and shareholder returns.

Balance-sheet strengthening

Behind the rally sits a broader recapitalization push. Shareholders approved a resolution at First HoldCo’s May 29 AGM to raise up to N253 billion as part of the group’s drive toward a N1 trillion paid-up capital target — double the Central Bank of Nigeria’s N500 billion minimum requirement for banks with international authorization.

Paid-up capital has already crossed the N500 billion threshold, clearing the CBN deadline ahead of schedule.

The board has signaled further placement tranches are still being planned, reportedly at a price close to the N44 per share subscribed in the last round.

The group had earlier injected roughly N270 billion into subsidiary FirstBank as part of its recapitalization efforts, part of a broader balance-sheet fortification programme now in its second tranche.

More insights:

Q1 2026 numbers point to an earnings turnaround underpinning investor appetite.

• Interest earnings rose to N704.4 billion from N625.2 billion year-on-year.
• Operating profit jumped to N320 billion from N186.6 billion, driven by stronger loan and investment securities income alongside rising fee and commission revenue.
• Total equity climbed to N3.4 trillion from N3.3 trillion, with retained earnings rising to N667.9 billion from N401.7 billion — a build-up analysts say strengthens the case for improved future dividends.
• It’s worth noting that FY2025 pre-tax profit fell 71.18% to N229.097 billion, and profit after tax dropped 93.36%, largely due to a roughly N748 billion one-off impairment charge tied to legacy non-performing loans.

Otedola said this was a deliberate “clean house” move to reset the balance sheet rather than a sign of underlying weakness — and the market’s subsequent buying suggests investors are positioning for expected big payout.

With paid-up capital targets in sight, chairman-led accumulation continuing, and Q1 earnings already rebounding sharply from the prior year’s impairment-driven trough, First HoldCo appears positioned to sustain its rally.

What you should know:

Analysts point to Otedola’s buying as a key driver of investor confidence.

• In May, he made the largest single purchase of his chairmanship, spending N43.41 billion to buy 549.5 million more shares on the Nigerian Exchange, taking his combined stake to about 19.36% of the company’s issued capital.
• That was quickly followed by further accumulation through First HoldCo’s N45 billion private placement, in which Otedola was allotted roughly 672.9 million shares valued at approximately N29.6 billion
• This lifted his total stake to about 20.42% — entrenching him as the single largest shareholder in the group, ahead of institutional holder RC Investment Management Limited.

Otedola’s 20.42% stake has enhanced investor confidence as a conviction bet by insider leadership rather than speculative froth, a key factor that has now triggered an unprecedented rally.

The scale of month-to-date gains (over 55%) will likely raise curiosity about how much further near-term upside the market can support ahead of the earnings report by the end of July or early August.