It took until December 16, 2024, for the bell of the Casablanca exchange to ring for the first time that year. On that day, the agricultural solutions specialist CMGP was celebrating its stock market debut. It was a major success, with subscriptions exceeding the initial offering by a factor of 37. No fewer than 33,771 investors took part in the operation, which amounted to 1.1 billion dirhams, making it the third-largest IPO in the history of the Casablanca exchange.
The nightmare of transparency
Despite this investor enthusiasm, the Casablanca Stock Exchange still struggles to attract interest. Over the past five years, only six IPOs have taken place: Aradei Capital in 2020, TGCC in 2021, Disty Technologies and Akdital in 2022, CFG Bank in 2023, and finally, CMGP in 2024. This momentum remains insufficient for a stock exchange that aims to play a central role in financing the Moroccan economy.
There are still sectors that are very underrepresented in the stock exchange. I’m thinking in particular of the tourism sector, which accounts for between 6 and 7% of GDP, yet only one company is listed (Risma, editor’s note). That represents barely 0.4% of the market capitalization, » emphasizes Tariq Obaid (AD Capital).
« The recent stock market debut of CMGP was spectacular. This confirms the strong interest of investors, across all profiles, in the market. However, it’s true that more can be done to attract other companies and diversify the stock offering. There are still sectors that are very underrepresented in the exchange. I’m thinking in particular of the tourism sector, which accounts for between 6 and 7% of GDP, yet only one company is listed (Risma, editor’s note). That represents barely 0.4% of market capitalization, » emphasizes Tariq Obaid, Deputy General Manager of the fund management company AD Capital.
Two main factors are hindering the emergence of new stock market listings. First, companies are reluctant to open their capital for fear of losing control or being subject to the transparency and governance requirements imposed by the financial market.
« Listing on the stock exchange is primarily about transparency, which discourages some companies from taking the leap, as they fear having to disclose their financial performance, management practices, or even their strategies to competitors and the general public, » explains Farid Mezouar, director of FL Markets and a specialist in the stock market.
Stock market vs. banking market
In addition to the fear of transparency, competition from banks remains a major obstacle, as they continue to be the primary source of financing for businesses in Morocco. In 2024, local banks granted over 29 billion dirhams in loans to private and public enterprises.
Meanwhile, the stock market facilitated approximately 6.5 billion dirhams in financing, including 1.1 billion from CMGP’s IPO, 5.1 billion from capital increases by Akdital, Aradei Capital, CIH Bank, Managem, and Stokvis, and 306.77 million dirhams through bonds issued by listed companies.
« Well-structured companies with long-standing banking relationships can easily secure loans at favorable rates without having to comply with the transparency requirements of the stock market. They don’t see much incentive to go public, especially since banks encourage them to stick with this option, » notes a local banker.
However, this preference for bank credit is not necessarily a concern for the CEO of the Casablanca Stock Exchange, Tarik Senhaji. He views stock market financing primarily as an alternative to address the undercapitalization of Moroccan businesses and to reduce their debt levels—two issues affecting more than 80% of companies in Morocco, making them particularly vulnerable to external shocks and economic crises.
“We have proven that we can mobilize large-scale investments thanks to strong demand. But if we do not increase the supply—meaning if more companies do not come to raise funds—this momentum risks fading. That would be very unfortunate.”
Tarik Senhaji, CEO of the Casablanca Stock Exchange
« The banks, which are also shareholders of the exchange, are fully aware that Moroccan companies are undercapitalized and that the stock market can be an excellent alternative to address this issue and reduce their debt levels. I don’t believe there is a strategic blockade within the banks, » he insists.
Nevertheless, the CEO of the Casablanca Stock Exchange expresses concerns about the slowdown in stock market activity observed over the past two years due to the lack of diversity in listed securities.
« We have proven that we can mobilize large-scale investments thanks to strong demand. But if we do not increase the supply—meaning if more companies do not come to raise funds—this momentum risks fading. That would be very unfortunate, » he emphasizes.
A radical solution
To reverse the trend and enhance the attractiveness of the Casablanca exchange, experts agree on the need to implement incentive measures, simplify the listing process, and raise awareness among the national entrepreneurial network about the benefits the market offers.
“We could require all companies, whether listed or not, that reach a certain revenue threshold to adhere to a minimum level of financial transparency. This would help ensure that listed companies are not at a disadvantage compared to their competitors”
Farid Mezouar (FL Markets)
To go even further, Farid Mezouar proposes a broad application of transparency requirements to restore fair competition between the stock market and the banking market. By diversifying their sources of financing, companies can reduce their dependence on bank loans, improve their solvency, and strengthen their investment capacity, especially since the national economic climate is favorable and the market is promising.
« The state has already introduced tax incentives, but that has not been enough. More radical measures are needed. We could require all companies, whether listed or not, that reach a certain revenue threshold to comply with basic financial transparency rules. This would ensure fairness and prevent listed companies from being disadvantaged compared to their competitors, » the expert concludes.
Written in French by Safae Hadri, edited in English by Eric Nielson