Casablanca Stock Exchange: Immorente, an introduction like no other

Wasted for a long time, the Casablanca Stock Exchange will return to the introductions. Immorente Invest, a real estate company managed by Soumaya Tazi, has obtained its visa from the Moroccan Capital Market Authority (AMMC).

Unprecedented, the introduction will cover 60.9% of capital in a Moroccan stock market universe where floaters seldom exceed the 30% threshold. The other novel is about the very timing of the introduction. In general, IPOs are involved in a phase of euphoria and high growth that pushes the company to want to invest to buy new machines and increase its production lines. Quite the opposite of the candidate of the day, Immorente, who recorded two consecutive deficits in 2016 and 2017 respectively of 2.11 and 7.5 million dirhams (1euro = 11 dirhams) and postponed the dividend distribution.

The management, which held a press conference on April 10, explains these deficits by the absence of a chart of accounts specific to the company’s activity. The property investment business does not yet have specific regulatory and accounting frameworks in Morocco.
In fact, significant amortization of property, plant and equipment (construction) at the income and expense account level significantly reduced the company’s net income.
Another indicator that enters the analysis, the debt of the company up 78.4% to 124.6 million dirhams over the two years. The management said it subscribed to a bond loan of 150 million dirhams and a bank credit of 35 million.

At the end of December 2017, the ratio of net debt to equity stood at 231.8%.
Created in May 2011 at the initiative of CFG Bank, Immorente is an investment company whose purpose is to acquire or develop, directly or through subsidiaries or majority or minority interests, professional real estate assets intended for rental.


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