Casablanca stock exchange launches charm offensive to encourage listing

The Casablanca stock exchange has launched a campaign to encourage SMEs to issue initial public offerings to enable them to access equity funding in an economy dominated by bank financing.

Head of the Casablanca stock exchange highlighted to the media the attractiveness of the bourse where he said there is a high demand from investors.

He gave the example of the high liquidity in the stock exchange, noting the high subscription in the latest IPOs.

The most recent IPO by construction and real-estate company TGCC last year for example was subscribed 22 times.

Stock exchange listing is “a chance for the national economy” he said, adding that “we have a very active banking system, one of the pillars of our economic model. It already gave good results. Yet, we would like to establish the next launchpad for Moroccan growth, it is therefore better to mix bank credit with equity funding. Because, relying on credit only could be detrimental in the long-run,” he said.

Encouraging IPOs features among the economic goals of the new development model which targets increasing new listings to 300 by 2035, compared to 76 currently.

The model also aims to increase Casablanca stock exchange capitalization from 54% of GDP now to 70% by 2035.