Abdul Samad Rabiu, a prominent businessman and billionaire from Nigeria, has suffered a decline in his net worth by half a billion.
The loss has been continuous since the first trading day of June, when shares of his flagship company, BUA Cement, were trading at all-time highs.
Due to the recent stock market sell-off, which has an impact on the price of their assets and investments, African billionaires like Johann Rupert and Strive Masiyiwa are seeing their net worth fall.
Abdul Samad Rabiu gets the most of his wealth from his 98 percent ownership of BUA Foods and his 92 percent ownership of BUA Cement Plc, one of the continent’s fastest-growing cement firms.
The decline in share price
A report has shown that the leading billionaire, who is second-richest in Nigeria behind Aliko Dangote, the richest man in Africa, has seen his net worth decline by $500 million, from $7.2 billion in the first week of June to $6.7 billion.
Due to a decline in the share price of his newly consolidated food company, which was listed on the Nigerian Exchange in January, as well as his cement company, BUA Cement, his net worth has dropped by $500 million during the last 29 days.
The stock prices of BUA Cement and BUA Foods have decreased from $0.179 and $0.144, respectively, at the beginning of this month to $0.173 and $0.132.
The recent sell-off of shares on the Nigerian Exchange occurred as investors on the bourse reduced their stakes in risky assets in a move to preserve wealth. In addition, the plan was also to direct funds into investments with a proven track record of real return. This can be blamed for the decline in the stock prices of the companies.
Rabiu has surpassed telecom billionaire Mike Adenuga to become Nigeria’s second-richest man, despite a recent decline in his net worth. This comes about five months after Rabiu listed his food company on the Nigerian Exchange, which caused his net worth to more than double to more than $7 billion.