The recent initial public offering (IPO) on the Moroccan stock exchange has successfully attracted the fifth-largest number of subscribers in the country’s stock market history. This development indicates a sustained momentum for public offerings, increasing the total number of listed companies to 81. The medical technology group T2S (Technologies for Science and Health) raised a substantial 1.1 billion dirhams (approximately 120 million USD) through capital increase and the sale of existing shares, priced at 223 dirhams per share. Following its debut on the trading floor, T2S's shares surged by the maximum limit of 20%, closing at 267.5 dirhams.
The IPO was met with overwhelming interest, drawing in 111,000 subscribers, marking it as the fifth highest in terms of investor participation in Moroccan public offerings. Total demand reached an impressive 48.1 billion dirhams, reflecting a coverage ratio of 43 times the available shares, as officially reported on Monday during the start of trading for the company’s stock in Casablanca.
Investor Confidence in the Moroccan Stock Exchange
Nasser Sadiqi, the General Director of the Casablanca Stock Exchange, commented that the figures achieved by T2S's IPO reflect a growing confidence among investors in the exchange. He noted the increasing inclination of investors to allocate their savings into robust companies with promising growth prospects. Sadiqi emphasized that these results affirm the exchange's role in financing serious companies that possess viable projects, thereby contributing to strengthening the economic fabric and adding value to the national economy.
T2S is notably the first company to benefit from new regulations that have increased the price fluctuation limit for newly listed shares to 20% during their first five sessions, before reverting to the usual 10% limit.
Since its establishment in 1992, T2S has been engaged in the production and sale of medical testing and imaging equipment, oncology supplies, operational room setups, medical consumables, laboratory diagnostics, and the production and distribution of radioactive pharmaceuticals, along with digital solutions aimed at the healthcare sector.
Growth of the Medical Equipment Market in Morocco
The medical equipment market in Morocco is experiencing continuous momentum, fueled by the growing establishment of both public and private healthcare institutions and the expansion of health coverage. The company's forecasts suggest that the market will rise from 3.9 billion dirhams last year to 6.7 billion dirhams by the end of the decade, with an annual growth rate nearing 12.7%. Sourdou also stated that the group operates in over 20 African countries and has developed a comprehensive model that includes the manufacturing of materials used in nuclear medicine and cancer treatment, as well as the development of Moroccan digital solutions that connect diagnostic and treatment devices within healthcare institutions.
As the third entity listed in the healthcare sector on the Moroccan Stock Exchange, T2S aims to utilize the proceeds from the IPO to fund its expansion plans both domestically and internationally, thereby enhancing its access to financing markets.
In light of the subscription results, the CEO expressed that the demand exceeded the company’s expectations. He confirmed that the need for healthcare services and technologies in Morocco and Africa remains significant, indicating the group’s plans to implement projects for establishing and equipping cancer treatment centers in Morocco while transferring knowledge and expertise to several African nations.
The British investment fund Trone Investment Holdings Limited is the largest shareholder in T2S prior to the IPO, holding a 62% stake, which is projected to drop to 42% following the completion of the capital increase. The remaining shares will primarily revert to the founders, including CEO Abdul Raouf Sourdou, who holds nearly 20%.
T2S has set ambitious growth targets, projecting revenues of 1.7 billion dirhams in 2025, with expectations of a 21% increase this year, followed by a leap to 4.1 billion dirhams by 2030, equating to a growth rate of approximately 136% compared to last year. Furthermore, the company reported net profits of 211 million dirhams last year, with anticipations of rising to around 235 million dirhams this year and reaching 607 million dirhams by the end of the decade, representing a growth of 187% during this period.
The success of T2S's IPO reinforces the momentum that the Moroccan IPO market has experienced recently, with the exchange attracting three public offerings in 2025, totaling 6.2 billion dirhams, all of which continue to trade above their initial offering prices.
As reported by asharqbusiness.com.
