Most Moroccan enterprises ignore advantages of stock exchange, study

Nearly 29% of Moroccan enterprises have no idea about the conditions required to be listed on the stock exchange, 52% ignore the moves and procedures for the listing while 34% are not properly informed of the advantages of the stock exchange.

The figures were revealed by a study on the financing of industrial enterprises via the bourse conducted last June by the Ministry of Trade, Industry and Handicraft.

The study covered a sample of 100 enterprises out of the 6,250 forming the Moroccan industrial sector.

The study shows 42% of enterprises are projecting to be listed in the bourse in the short or mid term-- after they restructure and modernize their production modes and management systems-- while 14% have no such projects for the time being but wish to be listed in the years to come, and 44% are not interested by the stock market.

Some of the enterprises not interested by the listing explain their stand by the instability of the bourse, the lack of visibility in the future or their situation which does not require any important financing. Others blame the lack of interest in the shareholders' reticence to open the enterprise capital to third persons out of fear to share control.

The study revealed that 83% of the enterprises listed in the stock market concede that they have drawn benefits from the listing, especially through assessment of assets and improvement of notoriety and credibility vis-a-vis their partners.

The study recommended the creation of a $10 million fund to help industrial enterprises be listed on the stock market. It also recommends new finance and support tools, lower listing fees, a reduction of the capital ceiling requirement and easier conditions.