Akdital has been officially on the stock market since December 14. This is the 2nd IPO hosted following Disty Technologies. The number of companies listed in Morocco remains far behind Egypt, Turkey and Tunisia.
The Casablanca Stock Exchange continues its slight rebound for the 4th consecutive week. On December 13, for example, the MASI reduced its decline to 15.3%. However, the depth is still not there, since the volumes traded remain low with average transactions of some 115 MDH.
At the writing of these lines, the Moroccan health group Akdital has signed its first listing on the stock exchange. At an introductory price of 300 DH, the value opened up 2% on Wednesday, from its first listing. As a reminder, the company has chosen two operating methods for its IPO: a capital increase of 800 MDH, coupled with a sale of securities of 400 MDH. This brought the total amount of the operation to 1.2 billion DH. The operation was oversubscribed 3.77 times. Thus, the company mobilized 4.5 billion DH, with 8,225 subscribers, more than 96% monopolized by individuals.
This is the second IPO that the Casablanca Stock Exchange has hosted this year. The first concerned Disty Technologies which, it should be noted, was the first to enter the new alternative market. Since its first trading session at a price of 284 DH on that date, the share fell to 196 DH, a loss of 31% of its initial value. Even the previous IPO which was recorded at the end of 2021 was not very successful, in terms of price progression. Indeed, TGCC which was introduced at 136 DH, is currently trading at 126 DH, signifying a drop of 7.5%.
About ten IPOs per year…, there was a time
Gone are the days when IPOs abounded, with around ten each year, when prices soared to peaks as soon as they were listed, when liquidity on the stocks introduced was in full swing and when white-collar workers snapped up shares to satisfy orders from their clients. Even the demand for these securities during the subscription period is far from being similar to previous years. Disty Technologies was oversubscribed just 1.34 times. “These are two totally different contexts from each other. The economic conditions are not the same. The values remain interesting on a fundamental level, whether in terms of growth potential or financial achievements,” explains this analyst from a brokerage firm. Nevertheless, the global context does not lend itself to it. “All this period of turbulence that we are experiencing, that the country did not choose, but that it is undergoing, affects the morale of investors and therefore their investment decisions. Many of them withdrew from the equity market, to invest their savings in diversified risk products, such as UCITS, or in others with a sure return, like bancassurance,” he adds. .
No success for Elite
Moreover, the equity market is sorely lacking in fresh paper. With two withdrawals this year, the stock market has only 74 listed companies. This remains low compared to the countries with which we are used to comparing ourselves, such as Egypt, Turkey, or Tunisia, which respectively have 285 listed companies, 371 and 81 for Tunisia.
The Casablanca Stock Exchange has somehow implemented the necessary means to attract companies to list on the stock exchange. One of these tools is the Elite program which, it should be remembered, was launched in 2016, as part of a partnership with the London Stock Exchange. A hundred companies have admittedly joined, but without tangible results on the financial market. Intentions to raise capital have been expressed here and there by companies that have benefited from the support of this program. Note, however, that Disty Technologies is part of the first cohort of this program… In the meantime, the facts are there. Few companies are heading this way to finance their growth, probably preferring recourse to bank credit or bond debt.
It must be said that all the prerequisites are available, both in terms of IT system and governance, but also support and preparation. Moreover, the New Development Model reserves strong ambitions for the Moroccan capital market, positioning it as a reference financial hub in the region. By doing this, he intends to bring stock market capitalization to 70% of GDP by 2035 and have 300 companies listed on the stock market by 2035. All that remains is to attract these potential issuers!
…and two write-offs
While the exchange welcomed new recruits into its fold between 2021 and 2022, two other companies were delisted. This is the Danone Central on December 30 of last year and soon Lydec, on the same date this year. The reduced float and the lack of liquidity on the stocks explain this withdrawal from the equity market. Many companies have expressed their desire to withdraw from the stock market, such as Lecarton, Marocaine vie, AXA Crédit, Branoma, Berliet, Fertima… The reasons are not all related to the lack of dynamism in the market. They may relate to strategic decisions, as was the case with ONA when it merged with SNI.
Several stocks are candidates for withdrawal from the stock market and delisting of securities due to their lack of liquidity. Allusion made to Balima, Zellidja, Rebab Company, whose securities are no longer traded on the market. Moreover, the volume of the equity market is recorded mainly by large market capitalisations, including banks, Maroc Telecom, real estate investment companies and a few construction companies. Some Small & Mid capitalizations also stand out, especially those whose activity is sustained and which hold interesting growth potential, like Colorado, HPS.
