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Morocco aims to expand capital markets with ambitious stock exchange growth plan

Morocco aims to expand capital markets with ambitious stock exchange growth plan
Tuesday 11 February 2025 - 10:50 By: Dakir Madiha
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Following the successful public debut of irrigation company CMGP, Morocco has unveiled plans to triple the number of companies listed on the Casablanca Stock Exchange by 2035. CMGP's December 2024 initial public offering (IPO) saw its stock value surge 75% post-listing, drawing unprecedented investor interest with a 37-times oversubscription rate and attracting 33,771 investors, marking it as the third-largest IPO in the country's market history.

The Moroccan Capital Markets Authority is now ramping up initiatives to diversify market participation, with a particular focus on the agri-food sector. Despite representing 25% of Morocco's industrial output, this vital sector maintains minimal presence on the exchange.

To achieve the 2035 target, economic experts advocate for expanding alternative funding channels to strengthen value chains, boost exports, and decrease import dependence. The Moroccan Trade Association (CGEM) is working to make the stock market more accessible, challenging perceptions that it serves only major corporations.

CGEM's president Chakib Alj emphasized the market's broader relevance, stating, "Contrary to popular belief, the stock market is not just for large enterprises—it is a crucial tool for SMEs' growth."

The Casablanca Stock Exchange has established an alternative market segment with reduced listing requirements, enabling companies with market capitalizations as low as MAD 5 million to participate. However, market adoption remains limited, with only five companies currently listed in this segment.

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