The decision was made on October 17, following a meeting of the board of directors of Holmarcom Finance Company (HFC), the holding company that oversees the group’s financial market subsidiaries. The following day, the Moroccan Capital Market Authority (AMMC) approved the initial public offering (IPO).
On Monday, October 21, Holmarcom shared details of this operation, valued at 1,032,640,350 dirhams, during a press conference in Casablanca. HFC will sell 11.3% of Crédit du Maroc’s (CDM) capital to the public and to bank employees. Following this transaction, Holmarcom will continue to hold 67.4% of CDM’s capital and voting rights.
According to the group, this operation aligns with its strategic vision of developing a diversified and integrated financial hub with a pan-African focus. « Crédit du Maroc is a large, historic institution, deeply rooted in the Moroccan economy for almost a century. We have been here for two years to further develop this bank (…) and unlock its full growth potential, » emphasized Holmarcom’s CEO, Mohamed Hassan Bensalah, during the press conference.
850 dirhams per share
Through HFC, the Holmarcom group plans to sell exactly 1,229,577 shares of Crédit du Maroc at a price of 850 dirhams per share, excluding a specific discount granted to the bank’s employees.
« This is a major operation for the Moroccan market, as it exceeds one billion dirhams. It allows CDM’s stock to increase its free float to over 20%, bringing it closer to its peers in the banking sector and enabling it to be valued similarly to comparable institutions, » explained Idriss Berrada, the financial advisor for the operation and CEO of Attijari Finances Corp.
Two valuation methods were used to set the price of the operation: the weighted average price method and the peer comparison method, explained Idriss Berrada. “For the first method, we chose a 12-month analysis period, which is relatively long. The aim was precisely to show the full progression of this price and capture the announcement of generally positive results over this period. With this method, we arrived at a 12-month weighted average price of 854 dirhams.”
He added, “As for the second method, we benefited from being in a sector well-represented on the Casablanca Stock Exchange, with major banks that maintain a certain level of liquidity. In terms of valuation, this approach gave us a price of 1,037 dirhams. We aimed to take a relatively cautious stance by giving greater weight to the weighted average price method over the peer comparison method, resulting in a share value of 927 dirhams, which we then discounted by 8.3%, bringing us to a final share price of 850 dirhams.”
The subscription period will begin on October 28 and will run until November 1, 2024. The allocation of shares will take place on November 7, with the operation’s listing on the Casablanca Stock Exchange scheduled for November 11.
Doubling the free float
According to Lamiae Kendili, Deputy CEO of HFC, this public offering “fully aligns” with the group’s strategy and objectives, and “strengthens Crédit du Maroc’s position.” “It will double Crédit du Maroc’s free float, which will enhance the stock’s liquidity, increase its visibility and attractiveness for investors, and improve CDM’s valuation,” she affirmed.
This operation “also allows all Crédit du Maroc employees to share in the economic performance they help achieve daily. It will open our capital to the general public and institutional investors, enabling everyone to benefit from the bank’s growth momentum. The bank is experiencing a remarkable dynamic, having undergone significant transformation, with results already showing,” emphasized the Deputy CEO.
Holmarcom’s acquisition of Crédit Agricole’s entire stake in Crédit du Maroc was finalized in December 2022. Initially, the purchase covered 63.7% of the capital (50.9% by HFC and 12.8% by AtlantaSanad). After an agreed-upon period of 18 months and following the removal of all regulatory suspensive conditions, the group led by Mohamed Hassan Bensalah announced on June 7 the completion of the acquisition of the second tranche of Crédit Agricole’s stake, covering 15% of the bank’s capital and voting rights.
The new development plan for CDM, focused on a « strategic repositioning, improving commercial performance, and accelerating digital transformation, » was launched at the end of 2022. Initial results show positive indicators in the first half of 2024, with a 7.9% increase in customer loans, a 12.6% rise in net banking income, and a 36.8% growth in net income attributable to the group.
A « source of pride » for CDM
A five-year plan called CDM Boost 2028, driven by this new positioning, has also been launched. It aims to accelerate commercial momentum with a redesigned product and customer journey, faster digital transformation, and continuous improvement in customer service.
“For Crédit du Maroc, it’s a source of pride to join the Holmarcom group. Employees are very proud to now be part of a 100% Moroccan bank and to join this historic group. As Lamiae Kendili highlighted, this IPO also diversifies CDM’s portfolio within the Holmarcom group, enabling HFC to support its other equally important investment projects,” said Ali Benkirane, Chairman of the Management Board of Crédit du Maroc, in an interview with TelQuel.
« Employees are very proud to now be part of a 100% Moroccan bank and to join this historic group »
« We are proud, as both employees and management of Crédit du Maroc, to have achieved autonomy from Crédit Agricole, as well as to have delivered the strategic roadmap developed with the group and the shareholder from day one. This plan is already yielding results, with highly satisfactory commercial and financial performance over the first 18 months. The growth potential remains very significant, » he continued.
According to Ali Benkirane, this growth potential applies to « virtually all activities and areas » and has already proven successful across several sectors, including « the trading floor, which has seen substantial growth in the last 18 months, both in bond and fixed-income activities. » The leasing sector is also « experiencing significant growth thanks to the restructuring work done, » as well as consumer credit, real estate development, and business financing in general.
He concluded, « Our growth is also substantial because this is a bank reasserting itself across various areas, fully tapping into the potential it holds in the market. We know there’s still much progress to be made because our goals are primarily focused on customer satisfaction, offering a high-quality experience, and being among the top banks in the market. We work every day with our employees to achieve this. »
Written in French by Ghita Ismaili, edited in English by Eric Nielson
