How Tony Elumelu's Net Worth Increased by $20 Million in Just 55 Days
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Business - October 25, 2023

How Tony Elumelu’s Net Worth Increased by $20 Million in Just 55 Days

Tony Elumelu’s net worth has always been a topic of intrigue in the financial world, but its recent surge by a staggering $20 million in a mere 55 days has left many astounded. 

This remarkable financial leap not only underscores Elumelu’s prowess in the world of business but also prompts a deeper dive into the mechanisms and strategies that fueled such growth. 

Join us as we explore the journey behind this rapid ascent in wealth.

His 7.39 per cent stake in UBA

According to reports, Elumelu, saw the market value of his shares in the United Bank of Africa, UBA, increase by $19.33 billion in the past 55 days.

Elumelu’s 7.39 per cent stake in UBA is equivalent to 2,527,372,285 ordinary shares. Recall that Nigerian businessman, Femi Otedola earlier revealed that he gave Tony Elumelu $20 million to buy the necessary shares in UBA for the acquisition.

Since 2005, Elumelu has increased his shareholding in the bank. He holds some shares indirectly through HH Capital Limited (140,843,816), Heirs Holdings Limited (1,814,003,900 ) and Heirs Alliance Limited (231,086,468 units).

The recent 44.2 per cent increase in UBA shares

Elumelu’s networth increase is closely linked to the recent increase recorded by UBA shares over the past 55 days. Reports say the UBA’s share price rose from $0.0197 to $0.0219. 

The surge made the bank rank as one of the most valuable institutions on the Nigerian Exchange, with a market capitalization of $880.14 million.

The bank now sits as the 13th most valuable stock on the Nigerian Exchange (NGX). This 44.2 per cent increase pushed Elumelu’s stake from $43.73 million on the 30th of August, 2023 to $63.06 million, over the past 55 days.

The revaluation of investment securities in naira terms

The increase in UBA’s shares can be attributed to the revaluation of investment security in naira terms. This happened after the unification of the naira in the second quarter of 2023, which resulted in a foreign exchange revaluation gain of $566.6 million in the initial half of 2023.

Under Elumelu, UBA experienced a 437.8 per cent surge in profit, skyrocketing from $94.7 million in the first half of 2022 to $512.4 million in the corresponding period of 2023.

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