The market value of South African businessman Laurie Dippenaar’s investment in FirstRand has dropped by more than $7 million in less than two weeks due to a huge drop in the shares of the top financial services group on the Johannesburg Stock Exchange.
Dippenaar’s share in FirstRand has dropped by R102.68 million ($7.36 million) since Aug. 10, according to data tracked by HowAfrica, as investors on the local exchange continue to sell their stakes in the Johannesburg-based business.
Laurie Dippenaar‘s financial success story began in 1977, when he co-founded Rand Consolidated Investing with GT Ferreira and Paul Harris. The corporation went through a succession of mergers and acquisitions, culminating in the 1990s with the development of FirstRand.
Since its founding, FirstRand has played a crucial role in Africa’s financial services industry, and it now ranks as the continent’s most valued financial services company.
Laurie Dippenaar currently owns 1.76 percent of FirstRand, which translates to 98,726,988 shares. The rise in the value of FirstRand shares, along with currency depreciation, has resulted in a considerable fall in the market value of his investment.
FirstRand shares on the local exchange have dropped 1.93 percent in the last 12 days, going from R73.04 ($3.889) on Aug. 10 to R72.25 ($3.846) on Aug. 22, taking the group’s market valuation far below $450 billion.
As a result, Laurie Dippenaar’s holding in the top financial services provider has dropped by R102.68 million ($7.36 million) in value, from R7.21 billion ($382.43 million) on August 10 to R7.11 billion ($375.06 million) at the time of reporting.
According to market observers, the recent drop in FirstRand shares is due to a fall in purchasing demands on the Johannesburg Stock Exchange. As investors carefully rebalance their portfolios, FirstRand’s shares have lost interest and appeal, resulting in losses for stakeholders like Dippenaar.
Dippenaar is the non-executive chairman of FirstRand, supervising its operations in both the banking and insurance sectors, in addition to his major interest in the financial services business.