The Algiers Stock Exchange has marked a significant milestone with the listing of Moustachir SPA, the first Algerian startup to go public (via Initial Public Offering or IPO). The move is seen as a potential turning point for the country’s startups, offering a new avenue for funding and growth.
The consulting firm, founded in 2022 and recognised by Algeria’s Ministry of Knowledge Economy, secured regulatory approval from the Commission for the Regulation and Control of Stock Exchange Operations (COSOB) in November. This paved the way for a public subscription period running from December 1 to 31, 2024, during which Moustachir offered 125,000 new shares at 760 Algerian dinars (DA) each, approximately $5.70. The offering aimed to raise 94.44 million DA ($707,000) and represents 25 per cent of the company’s total capital, which comprises 500,000 shares with a nominal value of 40 DA each.
The listing ceremony was attended by key figures including the Minister of Finance, Laaziz Fayed, the Minister of Startups, Noureddine Ouadah, and Youcef Bouzenada, President of COSOB, underscoring the government’s support for this initiative.
Moustachir operates a digital consulting platform connecting experts with businesses and individuals seeking advice. Its service portfolio extends beyond this core offering, encompassing business management solutions (IDARATI), communications advisory (Moustachir Com), support for foreign companies entering the Algerian market, educational programs (Moustachir Academy), co-working spaces, profitability solutions, and open innovation programs.
The shares are listed on the growth compartment of the Algiers Stock Exchange, a segment designed for smaller, expanding companies. COSOB has emphasised the dematerialised nature of the securities, with electronic registration through authorised custodian account holders. The offering is targeted at Algerian resident investors, including individuals, employees, consultants, and public or private entities incorporated under Algerian law. Invest Market SPA acted as the broker and sponsor for the listing process.
This listing is noteworthy for several reasons. It diversifies funding options for Algerian startups beyond traditional venture capital and bank loans, offering access to public financing via IPO. Moustachir’s move sets a precedent for other startups seeking to tap into the capital markets.
COSOB’s approval of Moustachir’s IPO reflects a commitment to fostering innovation and supporting the growth of Algerian startups. The regulator has made available comprehensive information for potential investors, including an information notice and prospectus available at Moustachir’s headquarters, through its stock exchange promoter, and on the websites of COSOB, the Algiers Stock Exchange (SGBV), and Moustachir itself.
The listing comes amidst increasing activity on the Algiers Stock Exchange, following the introduction of CPA Bank and a planned capital increase for Banque de Développement Local (BDL). The anticipated listing of telecommunications company Djezzy is expected to further stimulate the market.
Looking ahead, there are calls for accelerated growth in listings, with potential introductions from insurance companies and other private sector firms in sectors such as pharmaceuticals, agri-food, and manufacturing. The key challenge, according to market observers, is to attract private companies to open their capital to public investment and to enhance the liquidity, attractiveness, and modernity of the stock exchange. An ambitious target has been set to reach 100 listings on both the main and secondary markets by 2030.
Moustachir’s successful listing represents a significant step in the development of Algeria’s financial and entrepreneurial landscape. Whether it triggers a wave of similar listings remains to be seen, but it undoubtedly marks a new chapter for startup financing in the country.