Casablanca Stock Exchange: CFG Bank presents its IPO – Media7

CFG Bank, a player in the banking sector in Morocco, presented, Thursday in Casablanca, its initial public offering (IPO) project through an increase in share capital, for a maximum amount of 600 million dirhams (MDH).

During a press conference at the Casablanca Stock Exchange, the Bank specified that this operation, the prospectus of which was approved on Wednesday by the Moroccan Capital Market Authority (AMMC), will be carried out by means of an increase of the share capital reserved for the public up to a total amount (issue premium included) of 599,999,950 Dirhams, at a subscription price per share of 110 Dirhams, with a nominal value set at 20 Dirhams, and a total of 5,454,545 new shares to be issued.

As for the value of the group’s equity, it amounts to 8.85 billion dirhams (billion dirhams).

Regarding the valuation, based on a price per share of 110 dirhams, the value of the group’s equity will be 3.851 billion dirhams following the capital increase, while the resulting P/E of CFG Bank will be 15.3x in 2024 for an average market P/E estimated at 16.5x, according to the same source.

In terms of subscription terms, the operation is organized in three tranches: the first is 300 MDH open to all types of subscribers, natural and legal persons, Moroccan or foreign, with a minimum subscription of 3 MDH, the second is 215 MDH also open to all types of subscribers with no minimum subscription, and the last of MAD 85 million reserved for eligible employees and/or managers of CFG Bank and its subsidiaries.

Thus, the subscription period runs from November 30, 2023 to December 7, the allocation of securities will take place on December 12, the first quotation on December 18, while settlement/delivery is scheduled for December 21.

This IPO is open to resident or non-resident individuals, of Moroccan or foreign nationality, legal entities under Moroccan or foreign law and having more than one year of existence on the date of subscription, investors qualified under Moroccan law excluding undertakings for collective investment in transferable securities (UCITS) in monetary and short-term bonds, as well as investors qualified under foreign law.

Speaking on this occasion, the Chairman of the Board of Directors, Adil Douiri, underlined the particularity of this IPO, which constitutes “the first initial public offering of a bank in 20 years”, and an opportunity to encourage banks Moroccan companies to embark on this path, thanking the bank’s advisors, including CDG and Attijari Wafabank who contributed to the success of this introduction.

He also highlighted the clear and effective governance of CFG Bank which makes it possible to quickly implement the development plans initiated since 1992 and having successfully transformed CFG Bank from a “pure” business bank to a universal bank. .

This capital increase will make it possible to double the bank’s outstanding assets and achieve the bank’s new strategic orientations by 2027, he said, noting that the keys to growth are innovation, demand, transparency and patriotism.

He also noted that CFG Bank’s experience as a merchant bank, as well as its financial engineering culture, now makes it possible to support Moroccan private and public companies through the granting of investment loans.

For her part, the general director of CFG Bank, Souad Benbachir Hassani, indicated that in order to maintain a predictable and rapidly growing GNP, the bank attaches great importance to agility and remains focused on two segments, namely individuals and large businesses, on recurring income products, as well as low-risk segments and products.

She also highlighted the strong technological content and innovation of the bank, in addition to the quality of human resources and management, with the aim of serving productivity, efficiency and quality of customer service, and to strengthen equity capital to support rapid growth

And to continue, that at present, the strategic orientations of CFG Bank are the development of current segments and the strengthening of the banking network through the opening of new branches.

The IPO of CFG Bank will allow it to strengthen its equity capital to support the rapid growth of its balance sheet, to increase its notoriety and its proximity to its partners and the general public, as well as to open its capital to employees. and customers to involve them in the future growth of the Bank.

CFG Bank, a universal bank since December 2012, was a pioneer in the business of investment banking in Morocco. The bank enjoys a strong positioning in several market segments which have built its reputation.

Founded in 1992 by Adil Douiri, Amyn Alami and Moroccan and foreign institutional investors, CFG Bank has established itself since its creation as one of the first independent and multi-business investment banks in Morocco.