IPO: Younès Benjelloun (CFG Bank) Highlights Seven Years of Economic Impact from Listings

Younès Benjelloun positions the introduction of Cash Plus within the context of ten IPOs conducted since 2018. He explains that 5 billion dirhams were raised through capital increases at the time of these IPOs, amounting to approximately 6 billion dirhams across all operations. Additionally, the listed companies have raised another 5 billion dirhams in subsequent months or years. “This brings us to nearly 10 billion dirhams of equity injected via the stock market over seven years,” he summarizes. With these figures, he shifts the discussion to more measurable elements and reiterates that the stock market is indeed a source of financing for corporate investments. He addresses a persistent notion in some circles that he deems unfounded: “What some say, that the stock market is not very useful and is disconnected from the real economy… is false,” he asserts. He highlights the tangible effects of the raised equity, including financing investments, job creation, network development, and external growth operations. He cites the recent capital raise of 2.2 billion dirhams by TGCC, which was listed to finance a significant acquisition (STAM-VIAS). “It is thanks to the IPO that this operation was able to take place,” he notes, illustrating how listing becomes a rapid capital mobilization tool when strategic opportunities arise. While oversubscription and the number of subscribers capture attention during the initial listing, Younès Benjelloun encourages a more rigorous assessment of success. “It’s not the 80,000 or 150,000 people that make the IPO. Success is what happens afterward.” He believes the true measure lies in the stock's performance in the months and years following the IPO, the company's ability to raise equity again, and the loyalty of a core group of shareholders willing to support its growth. This long-term perspective, which contrasts with a focus solely on initial trading performance, serves as a message for both entrepreneurs and investors. His remarks, beyond the case of Cash Plus, also target business leaders who are still hesitant to take the plunge. He states that those who have dared in recent years “inspire many others to go further.” According to him, the Casablanca market is entering a phase where going public becomes a natural growth lever for expanding companies. He concluded by emphasizing the importance of offering the market fair valuations that allow for proper appreciation of the proposed shares, thus generating performance in the secondary market. For him, this is a crucial criterion for assessing the success of an operation. Moreover, when the stock appreciates after the IPO, the market tends to support subsequent operations in the secondary market. This was evident in the cases of TGCC and Akdital, whose capital increases in the secondary market were heavily subscribed. Y. Benjelloun insists that introducing companies at high prices is not the right strategy to gain market trust. The risk of stagnation or even a decline in stock price post-IPO can lead to distrust. Ultimately, Younès Benjelloun encapsulates what recent figures demonstrate: the Casablanca Stock Exchange is not an observation market but a financing market, directly linked to the real economy. This message is particularly relevant as a new generation of investors and companies enters the market.