Capitec Bank Share Drop Costs Billionaire Michiel Le Roux $31 Million

Michiel Le Roux, a South African billionaire, has seen the market value of his holding in Capitec Bank plummet as a result of the bank’s recent share price drop on the Johannesburg Stock Exchange (JSE).

Le Roux’s shareholding in Capitec Bank has decreased by R589.33 million ($31.65 million) in the last eight days. This follows a $112.3 million loss from May 20 to June 3.

Michiel Le Roux, Jannie Mouton, and Riaan Stassen co-founded Capitec Bank, which has developed itself as one of the world’s premier retail banking brands during the last 20 years. The bank operates more than 850 branches and 7,400 ATMs in South Africa. Le Roux presently owns 11.39 percent of Capitec Bank, which equates to 13,190,043 shares.

The top retail bank acquired Avafin, a Cyprus-based online lender with operations in Europe and Latin America, as part of its plans to become a worldwide player within ten years.

Over the previous eight days, Capitec Bank’s shares on the JSE have dropped by 2.01 percent, from R2,227.26 ($119.63) on June 3 to R2,182.58 ($117.23). This fall has reduced the bank’s market capitalization below $14 billion, resulting in significant losses for stockholders.

The recent single-digit percent loss in Capitec Bank’s shares has reduced the market value of Le Roux’s interest by R589.33 million ($31.65 million) in the last eight days, from R29.38 billion ($1.58 billion) on June 3 to R28.79 billion ($1.55 billion).

While Le Roux’s fortune has dropped by more than $31 million, Capitec Bank has been a good performer year-to-date, providing large returns to investors.

The company’s share price has increased by 7.71 percent, which means that a $100,000 investment at the start of the year is now worth $107,710, representing a large profit of $7,710.

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