The OCP group obtained, last week – a few days before the operationalization of the Agency for the Management of State Participations, whose Managing Director has just been appointed by the King – the green light from the government for the creation of “OCP Nutricrops”. A company with a capital of 13.8 billion dirhams called to hold the 5 subsidiaries of the group specializing in the chemical industry and fertilizers.
The decree authorizing the creation of this company evokes a business plan that would inspire the entire financial community, with an average turnover of around 30.6 billion dirhams over the period 2022 and 2025.
Opening of the capital of OCP Nutricrops: A possible option
According to the decree, this process will ultimately allow the creation of a leading company in the sector of fertilizers and tailor-made fertilization solutions, with greater flexibility and more options in terms of financing, especially with regard to the opening of capital to investors. The State might therefore choose to privatize the company by transferring part of the capital to the private sector. This can be done by mutual agreement, with a foreign industrialist for example. But we can also imagine an opening of the capital to the public through an IPO, allowing the OCP group to share part of the growth of this very high-potential subsidiary with citizens.
One can imagine from here the popular and historic success that an operation bearing the signature of the OCP would experience, and the lasting impact that this would have on the capital market, the depth of the stock market and its international visibility.
It should be recalled that the financial arrangement adopted consists of a contribution by OCP to OCP Nutricrops of several subsidiaries. In this case “Jorf Fertilizers Company I”, “Jorf Fertilizers Company II” and “Jorf Fertilizers Company IV”, 100% owned by the OCP group, and “Jorf Fertilizers Company III” and “Jorf Fertilizers Company V”, owned 50% and 60% respectively by the group.