A new Forbes report has revealed that business mogul Femi Otedola had become at least $398million between March 3 and June 2.
The reason for the financial burst is said to be the shares of his company, Forte Oil, which surged 167% in that period.
The report read,
On March 3, the company’s stock was trading at N88.4 ($0.55), and at the close of trading today (Monday), its share price was N235.79 ($1.46). According to Akinbamidele Akintola, Vice President, Africa equity sales at Renaissance Capital, the recent unprecedented demand and surge in Forte Oil’s shares may not be unconnected to the company’s recent inclusion in theMorgan Stanley MS +0.13% Capital International (MSCI ) Frontier Market 100 Index. Listing in such indexes usually attracts interest from global investors who track these companies.
Otedola became the largest shareholder in Forte Oil (formerly called African Petroleum) in 2007 when he acquired a 28.7% stake in the company from the government-owned oil company, the Nigerian National Petroleum Corporation (NNPC) for $120 million. He subsequently appointed himself as chairman of the company. Otedola, 47, has gobbled up additional shares over the years and now owns more than 40% of the $1.5 billion (Market Capitalization) company. According to information available from registrar sources, he currently owns 436,809,537 shares valued at N103 billion ($635 million). He pocketed at least $11 million in dividends from profits made by his company in February as Forte Oil paid shareholders a dividend of N4 ($0.0023) per ordinary share from its 2013 profits.
Otedola is listed on the FORBES list of the 50 richest Africans with a fortune we estimated at $410 million in November. With the recent surge in Forte Oil shares, we now peg his fortune at over $800 million. If Forte Oil’s stock continues its upward trend, it might not be long before Otedola regains his billionaire status.