Wale Tinubu, the prominent Nigerian oil billionaire and nephew of the country’s current President, Bola Ahmed Tinubu, has experienced a significant setback in the market value of his stake in Oando Plc, a leading energy company in Nigeria.
This downturn follows a remarkable $40 million boost in Tinubu’s wealth, which was driven by a surge in Oando’s share price to an eight-year high on the Nigerian Exchange.
According to data meticulously tracked by Billionaires.Africa, Wale Tinubu’s indirect stake in Oando has seen a staggering decline of N22.35 billion ($28.9 million) over the past 21 days. This sharp decline can be attributed to profit-booking activities by investors who initially profited from the soaring share price of the company.
Tinubu’s stake in Oando is held indirectly through his ownership of 66.67 percent of Ocean and Oil Development Partners (OODP). This investment firm, co-owned by Tinubu and Omamofe Boyo, holds a substantial portion of Oando’s shares, totaling 7,131,736,637 ordinary shares.
The recent catalyst for Oando’s remarkable share price surge was the company’s announcement of its intent to acquire 100 percent of the Italian-owned shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
This announcement swiftly drove Oando’s share price on the Nigerian Exchange, surging from N5.50 ($0.007) on September 1 to an eight-year high of N14.60 ($0.0189) on September 20. This bullish run brought substantial gains to Wale Tinubu and Omamofe Boyo.
However, in the aftermath of these gains, a wave of profit-booking activities among retail investors has caused Oando’s shares to plummet by 32.2 percent within the past 21 days. As of the time of compiling this report, Oando’s share price has fallen to N9.9 ($0.0128), indicating a significant retraction.
Consequently, due to this notable decrease in Oando’s share price on the Nigerian Exchange, the market value of Wale Tinubu’s stake in the company has seen a decline of N22.35 billion ($28.9 million) over the past 21 days. This decline has reduced his stake from N69.42 billion ($89.7 million) on September 20 to N47.08 million ($60.8 million).
In summary, Wale Tinubu, the Nigerian oil billionaire, has faced a substantial drop in the value of his Oando investment, primarily driven by profit-booking activities following a remarkable surge in the company’s share price. This situation highlights the dynamic nature of the Nigerian stock market and its impact on the fortunes of prominent individuals like Wale Tinubu.
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