Investors update: December 7, 2022 - Moroccan clinic operator Akdital IPO in Casablanca

Moroccan clinic operator Akdital launches IPO in Casablanca

Highlights

• Private hospital operator Akdital launched an initial public offering (IPO) to raise 1.2 billion dirhams ($110 million) on the Casablanca stock exchange to fund its development plan.
• The offering took place through a capital increase and a share sale with the subscription period running from November 29 to December 6.
• The IPO entails a capital increase where Akdital’s current owners are not taking the opportunity to cash in. The capital raise is expected to support its expansion plans in Morocco and Africa. 

Source: Company Prospectus

Our Takeaway

Akdital’s initial public offering (IPO) is happening at a good time for Morocco’s capital market, which raised more than MAD55.25 billion (over $5 billion) between January and October. This was 6.4% more than the MAD51.93 billion raised one year ago and of that total, equity transactions represented MAD992 million. The last IPO on the Casablanca stock exchange took place in July when IT company Disty Technologies raised $17 million. Amid a dearth of new listings, Akdital’s IPO gives Africa’s primary market a boost.

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Future Africa partners with TLG on $25m venture debt fund

Highlights

• Lagos-headquartered venture capital firm Future Africa is teaming up with TLG Capital, a London-based open-ended credit fund, to launch a $25 million venture debt fund earmarked for portfolio companies.
• The fund created from TLG’s existing funds will help Future Africa’s portfolio companies preserve their runway in an increasingly tight fundraising environment. 
• Last year, African startups raised over $5 billion. One common theme from the two mega-rounds announced was some dependency on debt funding: B2B e-commerce platform TradeDepot and fintech MFS Africa.

Source: TechCrunch

Our Takeaway

As of August, African startups had secured over $589 million in debt funding, accounting for ~ 16% of the total $3.6 billion in VC investments the continent attracted in the first eight months of 2022. The debt rounds were mostly concentrated in Africa’s major tech hubs. MNT-Halan ($150m), Wave Mobile Money ($91.5m), and Moove Africa ($80m across three rounds) received a huge chunk of the investments. Overall, debt funding is growing among African startups while the growing millions of US dollars being lent to startups reflect increasing global lender confidence in African tech.

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Africa’s electric vehicle market tipped to reach $21bn by 2027

Highlights

• Africa’s electric vehicle market was valued at $11.94 billion in 2021 and is projected to reach $21.39 billion by 2027, per Mordor Intelligence.
• Until recently high upfront costs hindered the full adoption of electric buses in most emerging markets, casting doubts over their readiness for a green transition happening in advanced economies.
• However, with the unique pay-as-you-drive model championed by several e-mobility startups operating across the continent, investors can make bus purchases at prices equal to standard, diesel-powered buses.

Source: TechCabal

Our Takeaway

The acceptance of electric vehicles is gaining momentum. In 2020, there were over 11 million registered EVs globally, which is expected to hit 145 million by 2030. Things are going at a much slower pace in Africa, however. EV adoption is currently at 5% of the total vehicles and for the most part, are private vehicles. But the latest developments suggest that might change soon, with the recent launch of the new Bus Rapid Transit (BRT) network in major cities to be traversed only by green vehicles and initiatives by EV startups like Opibus and BasiGo.