Laurie Dippenaar, a South African businessman, has seen a considerable decline in his fortune as a result of a recent drop in the market value of his FirstRand shares, fueled by variations in the lender’s share price on the Johannesburg Stock Exchange (JSE).
Dippenaar’s shareholding in FirstRand has decreased by R 608.16 million ($32.21 million) in the last 17 days. This decline is mostly due to local investors lowering their stakes in the well-known Johannesburg-based financial services firm.
Dippenaar’s fortune has decreased after a brief jump between May 6 and 17, when his share in FirstRand increased by $22.22 million. During this time, the market value of his investment increased from R6.39 billion ($351.60 million) to R6.79 billion ($373.81 million), demonstrating the volatility that exists in financial markets.
FirstRand is Africa’s largest financial services firm by market capitalization. Its integrated financial services business includes FNB, RMB, WesBank, and Aldermore, with active operations in South Africa, the United Kingdom, and Africa’s regional markets.
In the past 17 days, FirstRand shares have decreased by 8.87 percent, from R69.42 ($3.68) on May 21 to R63.26 ($3.37) at the time of reporting. This collapse has reduced its market valuation to below $19 billion, resulting in significant losses for stockholders, including Dippenaar.
Laurie Dippenaar, who co-founded Rand Consolidated Investing with GT Ferreira and Paul Harris in 1977 and helped it grow into a premier financial services firm, now owns 1.76 percent of FirstRand, or 98,726,988 shares.
However, the recent decrease in FirstRand shares has reduced the market value of his position in the largest lender by R608.2 million ($32.21 million) during the last 17 days, from R6.85 billion ($362.98 million) on May 21 to R6.25 billion ($330.77 million) at the time of writing.
Despite the recent fall, Dippenaar remains one of the top investors on the JSE and one of Africa’s wealthiest businessmen. His resilience and strategic aptitude have helped to strengthen his position in the financial sector.
FirstRand’s share price has fallen 13.94 percent this year, dropping below R64 ($3.4) and bringing its market worth below $19 billion. This poor performance has concerned investors, who have seen the value of their shares fall.
A $100,000 investment at the beginning of the year would now be worth around $86,060, representing a loss of almost $13,940.
