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Moroccan agritech company CMGP received approval to IPO on the Casablanca stock exchange, according to a press release (pdf). The IPO could raise up to MAD 1.1 bn (c. USD 109.5 mn) through capital increase and sale of shares.
What we know: Up to 5.5 mn shares are expected to be up for grabs, including 1.5 mn new shares, at an issuance price of MAD 200 (c. USD 19.9) per share. The subscription period will run from 2 December to 6 December.
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Where will the money go: The company plans to use the capital raised to expand its manufacturing capacity, as well as funnel new investments into its operations in African markets, Alaoual reports, citing comments made by CEO Youssef Moamah at a press conference. Solar energy, water treatment, and seed treatment are areas of expansion the company has sights on for the future.
About CMGP: CMGP Group operates in three main areas including agriculture, water and irrigation infrastructure, and solar energy. African Development Partners II (ADP II) and AfricInvest completed a merger between CMGP and Comptoir Agricole du Souss (CAS) back in July 2021, according to a press release (pdf) at the time. The joining of the companies allows AfricInvest and ADP to expand irrigation and agricultural water management technologies, allowing the company to further expand into new markets in Africa.
Recent moves: CMGP, the IFC, and Morocco’s Banque Centrale Populaire (BCP) set up a USD 36 mn risk-sharing facility (RSF) last year through which BCP would provide green loans to the kingdom’s agricultural sector. The RSF will lend support to some 30k farmers and SMEs in the country by 2027 to boost capacities for solar-powered irrigation, the development of sustainable water management systems, and micro-irrigation farming in Morocco.
