BMCE Capital Global Research recommends subscribing to the IPO of Cash Plus

BMCE Capital Global Research has recommended subscribing to the initial public offering (IPO) of Cash Plus. This valuation is based on a Discounted Dividend Model (DDM) approach, which reflects the robustness of the company's business model and its future prospects. The target price-to-earnings (P/E) ratio is projected at 22.3x for 2025 and 17.5x for 2026, aligning with or below market multiples of 22.6x and 21.3x, respectively. Founded in 2004 and licensed as a payment institution by Bank Al-Maghrib in 2019, Cash Plus has established itself as an integrated player in financial and proximity services. Its offerings include national and international money transfers, currency exchange, bill payments, and payment account management (M-Wallet). The company plays a central role in democratizing financial services for individuals and businesses, actively contributing to financial inclusion in Morocco. The IPO of Cash Plus comes at a favorable time, characterized by an increase in remittances from Moroccans living abroad, a positive tourism dynamic, and heightened digitalization of financial services. The growth of payment institutions and the sustained increase in M-Wallet accounts further strengthen the company's positioning, particularly in the flows between the state and citizens, a segment with significant growth potential. With nearly 5,000 service points as of June 2025, Cash Plus boasts a dense territorial network, which is key to its competitive advantage. Its development strategy aims to expand coverage in rural and semi-urban areas while consolidating its presence in major urban centers with high transaction volumes. This geographical proximity is a cornerstone of the Cash Plus model, which combines operational performance with social inclusion. Cash Plus is set to take a significant step in its digital transformation with the launch of a Super App that will integrate all its financial services. The current application, Cash Plus Mobile, already has 1.3 million users. The company is relying on its technology subsidiary, Mobilab, to accelerate this transition. Although not formally classified as a fintech, Cash Plus operates as a highly digitized financial player, capable of competing with technology firms in the sector. Shares from the IPO will entitle holders to dividends starting in 2026 (for the fiscal year 2025), with an estimated dividend of 8.9 dirhams per share, corresponding to a yield of 4.4% based on the IPO price, significantly higher than the market average of 2.7%. The company anticipates a payout ratio of 85% of its consolidated net income between 2025 and 2030 while maintaining a balanced financing policy. This hybrid profile, combining growth, yield, and visibility, gives Cash Plus a unique position among recent IPOs on the Casablanca Stock Exchange. According to BMCE Capital Global Research, this combination justifies a high valuation level for the IPO, at 20.7x the estimated 2025 earnings.