CFG Bank IPO on Casablanca Stock Exchange oversubscribed
CFG Bank's IPO reportedly proved to be a remarkable success among investors. Data gathered on Thursday, shortly after the closure of subscriptions, reveals that the offering was oversubscribed by an impressive 25 to 30 times, drawing interest from an estimated 20,000 investors. It's important to note that these numbers may fluctuate as all orders are processed.
Market operators indicate that the initial tranche experienced a subscription rate exceeding 50 times. These early statistics position the CFG Bank IPO as even more popular than Marsa Maroc's privatization, marking it as one of the notable success stories in the recent history of the Casablanca Stock Exchange.
For context, TGCC's IPO, considered the most popular in the last six years, garnered interest from 11,800 investors and was oversubscribed 22 times. The construction specialist aimed to raise 600 million dirhams. In a more recent comparison, Akdital's 1.2 billion dirham IPO attracted 8,225 investors and was oversubscribed 3.8 times.
Key Takeaways
Notably, this IPO marks a significant event in Casablanca, being the first since November 2022 when Akdital, a clinic operator, went public. Furthermore, CFG Bank stands out as the first bank to initiate an IPO since 2004. It's worth mentioning that while Morocco's three largest banks are already listed on the stock exchange, CFG Bank's move contributes to the broader initiative to encourage more IPOs. The stock exchange has embarked on a charm offensive, aligning with its goal of increasing the number of listed companies to 300 and attracting foreign investors to represent 25% of all transactions. This objective is part of Morocco's new development model, which seeks not only to expand the stock exchange but also to elevate its market capitalization from 50% to 70% by the year 2035. The collective efforts aim to position Morocco's financial landscape for sustained growth and increased international participation.
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