First HoldCo Plc’s share price staged a powerful recovery on the Nigerian Exchange, surging by 9.92% to hit N48.75 in a rally that has completely restored its market value to levels seen before a major sell-off triggered by its N748 billion impairment charge.
The swift rebound, which saw the stock hit its daily maximum price increase limit, signals that investors have fully embraced Chairman Femi Otedola’s “clean slate” narrative, viewing the massive balance sheet write-off as a strategic reset for future growth rather than a sign of weakness.
Okay News reports that the renewed confidence follows Otedola’s public assurances and his significant personal investment in the company, raising his total stake to 18.1% through share purchases worth billions of naira in late 2025. Market sources indicate intense buying pressure, with many daily buy orders going unmet by stockbrokers, as investors bet on the financial group’s restructured future following its deliberate purge of legacy bad loans.
Analysts at Lagos-based Meristem Research have set a target price of N73.22 for the stock, representing a potential 62.70% upside, reflecting optimism about the company’s post-cleanup prospects. Otedola described the process as a necessary disruption to rebuild a world-class institution, stating the move guarantees corporate sustainability and long-term value for all stakeholders, with his commitment to invest both financially and otherwise remaining unflinching.
The rally underscores a market consensus that First HoldCo’s drastic impairment was a “surgical strike” to de-risk the institution for 2026, transforming an apparent earnings disaster into a discounted entry point for growth. The billionaire chairman had previously divested a majority stake in Geregu Power Plc, estimated at $750 million, to consolidate his focus and capital on the financial services group’s reconstruction.
