If there were lingering doubts about the depth of capital available for North African tech, the debut of Cash Plus on the Casablanca Stock Exchange (CSE) this week has provided a definitive counter-narrative.
Trading under the ticker CAP as of December 8, the Moroccan money transfer and fintech operator didn’t just list; it triggered a liquidity squeeze. The IPO was oversubscribed 65 times, generating 48.8bn MAD ($5.2bn) in demand for an offer size of just 750m MAD ($80m).
For an African tech ecosystem often starved of liquidity and reliant heavily on strategic M&A for exits, the Cash Plus listing offers a rare case study in public market viability. At a listing price of 200 MAD ($21.30) per share, the company enters the market with a valuation of 4.91bn MAD ($523m) — cementing its status as a serious mid-cap player in a bourse typically dominated by heavy industry and traditional banking.
Here are the numbers behind the frenzy and the four key lessons for the ecosystem.
1. The Retail “Squeeze”
The headline figure is the volume: nearly $5.2bn in buy orders chasing an $80m float. However, the breakdown reveals a severe supply-demand imbalance that left the vast majority of investors under-allocated.
The operation mobilized 80,759 subscribers — a staggering figure for the CSE — drawn from 12 regions and 75 nationalities. Yet, the allocation data shows a market heavily rationed:
- The Satisfaction Rate:
With 244.1 million shares requested against only 3.8 million available, the average allocation rate was crushed to 1.56%. - The “Big Ticket” Lock-out:
Type I investors (institutional/large accounts) put up 46.7bn MAD ( $4.98bn) in demand but received a satisfaction rate of just 0.91%. - Retail Demand:
Individual investors (Type II) subscribed for 22.75bn MAD ($2.42bn).
They fared slightly better with a 2.29% satisfaction rate — but were still heavily capped. - The “Home Bias” Factor
Despite the presence of 75 nationalities, the capital flow was distinctly domestic:
— 98.75% of subscribers were Moroccan, and they captured nearly 95% of allocated shares.
Geographically, the money is centralized. The Casablanca-Settat region accounted for 59% of subscribers and nearly 90% of the total volume requested.
- Casablanca-Settat: 1.37% satisfaction rate
- Rabat-Salé-Kénitra: 2.13%
- Southern regions: satisfaction as high as 36%, though mainly due to very low order volumes.
2. A Playbook for Private Equity Exits
For years, the standard exit route for African private equity has been a secondary sale to a larger fund or a strategic buyout. Cash Plus proves the local IPO route is viable for PE liquidity — if the unit economics work.
The deal was structured as a mix of growth capital and shareholder sell-down, primarily facilitating a partial exit for Mediterrania Capital Partners (MCP).
- Cash-out ($38m):
MCP sold 1.8 million shares, reducing its stake from 23.5% to 14.3%. - Cash-in ( $41m):
The remaining capital raised flows directly onto the Cash Plus balance sheet to fund expansion.
The Cap Table Shuffle
Crucially, the Amar and Tazi families — the company’s historic founders — did not sell any shares. Their ownership diluted from 38.2% to 35.1% each purely due to the capital increase. Both families have committed to a seven-year lock-up, signaling conviction.
Analysts are watching MCP’s remaining 14.3% stake. Unlike the founders, the prospectus does not detail a strict lock-up for the fund. A future exit could introduce volatility in a stock with a limited 15.5% free float.
3. Valuation: Yield Over “Growth at All Costs”
Cash Plus rejected the global fintech playbook of “grow first, monetize later.” Instead, it positioned itself as profitable and dividend-driven — music to the ears of investors navigating high interest rates and inflation.
Priced at 200 MAD ( $21.30) per share, the company marketed a valuation representing a discount to intrinsic value. A Dividend Discount Model cited in the prospectus valued shares at 278 MAD ($29.55).
The Yield Promise
Cash Plus has pledged to distribute 85% of net profits as dividends annually from 2026 to 2030.
- 2024 Net Profit: $21.56m (actual)
- 2030 Target: $43.67m (projected)
4. The “Phygital” Moat
While digital-only neobanks dominate headlines, Cash Plus’s defensive moat is physical. The company operates a hybrid network of 5,000 branches (87% franchised) and a digital Super App with 2 million users.
In a cash-dominant economy like Morocco, the capacity to digitize physical money (cash-in/cash-out) at scale is critical infrastructure.
The fresh capital injection will strengthen this network and its tech stack — raising the competitive barrier for digital-only challengers.
The Risks: It’s Not All Green Candles
Despite euphoric demand, the prospectus flags several headwinds:
- Franchise Dependency:
With 87% of the network run by franchisees, deteriorations in service or alignment could erode brand trust. - Competitive Compression:
Heavyweights like Wafacash and potential international entrants may squeeze margins on transfer fees. - Tech OPEX Creep:
Aggressive investment in wallet and Super App infrastructure could dilute earnings — conflicting with the high dividend pledge.
The Bottom Line
Cash Plus has set a new benchmark for North African fintechs. The IPO demonstrates that African public markets can generate multi-billion-dollar demand for tech companies — provided fundamentals are strong and profitability is clear.
But the 1.56% satisfaction rate has created scarcity. As trading begins, volatility is expected as institutional investors — largely shut out of the offering — rush to build positions in the secondary market.