Investors Rush for First Holdco Shares as Stock Surges on Strong Financials and Fundraising Prospects

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Olori Uwem

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Mar 18, 2024
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Investors Rush for First Holdco Shares as Stock Surges on Strong Financials and Fundraising Prospects

Investors are scrambling for shares of First Holdco Plc following the company’s stellar financial performance and anticipated fundraising initiative. The stock has become the second most traded on the Nigerian Exchange (NGX) in the past three months and currently holds the title of the best-performing tier-one bank stock year-to-date (YTD).

Financial Performance Fuels Investor Confidence

First Holdco’s impressive financial results have driven investor demand, with the company’s profit before tax (PBT) soaring by 142% to ₦862 billion in 2024, while gross earnings surged to ₦3.33 trillion.

The stock price has responded accordingly, rising from ₦28.05 at the end of 2024 to ₦33.00 by early 2025, marking a 17.65% increase YTD as of February 7, 2025. This growth reflects strong investor sentiment, reinforced by the bank’s robust earnings and strategic leadership changes.

A look at the company’s nine-month earnings report (September 30, 2024) reveals an even earlier surge in gross earnings, up 134% year-on-year (YoY) to ₦2.25 trillion (from ₦962.4 billion in 2023), while PBT rose by 128% to ₦610.9 billion.

Otedola’s Leadership Spurs Market Rally

Investor confidence has also been boosted by the appointment of billionaire businessman Femi Otedola as chairman in January 2024. Under his leadership, First Holdco’s market capitalization skyrocketed to ₦1.22 trillion by February 2024, further strengthening its position as a market leader.

According to Patrick Ajudua, President of the New Dimension Shareholders Association of Nigeria, First Holdco remains one of the best banking stocks due to its strong financial fundamentals, growing net interest income, and ability to navigate economic challenges.

“With its proven track record, strong earnings performance, and strategic leadership, investors and shareholders remain confident in First Holdco’s ability to maintain its position as a market leader,” Ajudua stated.

First Holdco: A Stock to Watch in 2025

As Nigeria’s stock market adjusts to economic reforms and shifting investor sentiment, analysts continue to rate First Holdco as a prime stock for potential long-term gains. While market fluctuations pose risks, the company’s momentum suggests further upside potential.

With strong earnings growth, increasing investor interest, and strategic leadership changes, First Holdco remains one of the most valuable banking stocks on the NGX.