Nigeria: First HoldCo is preparing to sell nearly a quarter of its capital.

A significant operation is underway involving First HoldCo, the financial group that controls First Bank of Nigeria, considered the oldest bank in the country. The holding company intends to sell the shares currently held by RC Investment Management, an investment vehicle used during the exit of two former major shareholders.

The block comprises approximately 10.43 billion shares. It represents nearly a quarter of First HoldCo’s capital and currently constitutes the largest stake held by a single shareholder in the group.

Based on the recent stock price, this stake is valued between 1.3 and 1.4 trillion naira, roughly equivalent to one billion dollars. However, the final amount of the transaction will depend on the price set, market conditions, and the method of sale chosen.

The CEO of First HoldCo, Wale Oyedeji, had previously announced that the shares would be resold. He specified that RC Investment Management only held them temporarily and that several options were being considered for bringing them back to market. No specific timeline had been communicated at that time.

A stake purchased for 323.4 billion naira in 2025

The shares were acquired on July 16, 2025, as part of 17 off-market transactions on the Nigerian Exchange. The price was set at 31 naira per share, bringing the total value of the transaction to approximately 323.4 billion naira.

The sellers were Barbican Capital and several entities affiliated with businessman Oba Otudeko, as well as companies linked to the Leadway group and Tunde Hassan-Odukale.

Oba Otudeko sold approximately 7.79 billion shares, while entities associated with Tunde Hassan-Odukale sold nearly 2.29 billion. RC Investment Management was presented as the sole buyer of the block.

The Securities and Exchange Commission of Nigeria confirmed it had approved the operation, after concerns arose regarding the transaction structure and the identity of the ultimate beneficiary of the shares.

Since this acquisition, First HoldCo’s stock price has significantly increased. At 126 naira per share, recently reported by the group, the block held by RC Investment Management is worth approximately 1.314 trillion naira, more than four times its purchase price. Its value could reach 1.4 trillion naira if sold at a higher price.

This increase notably reflects a renewed interest from investors in First HoldCo. The group’s chairman, Femi Otedola, himself has increased his stake several times in 2026. Following new acquisitions, he controlled nearly 22% of the capital by the end of July, edging closer to the level held by RC Investment Management.

The sale of the block could therefore lead to a new reshaping of the shareholding structure. Depending on how the shares are distributed, it could favor the entry of a new strategic investor, increase the share of institutional investors, or strengthen the position of existing shareholders.

The operation also takes place in the context of a recapitalization of the Nigerian banking sector. First HoldCo is conducting a capital mobilization program aimed at strengthening FirstBank’s balance sheet and meeting new capital requirements imposed by the Central Bank of Nigeria.

In June 2026, the holding completed a new tranche of a private placement of 45 billion naira. The resources are to be injected into FirstBank as part of its capital strengthening plan and financing capacity.

The sale of the shares held by RC Investment Management is separate from this fundraising effort. It concerns existing securities and should not, in itself, bring new capital to First HoldCo, unless there are specific provisions related to the final structure of the operation.