Akdital: BKGR recommends to subscribe to the IPO

BMCE Capital Global Research (BKGR) recommended to subscribe to the initial public offering (IPO) by capital increase and sale of Akdital group shares.

“We recommend subscribing to the initial public offering by capital increase and sale of AKDITAL shares at the price proposed within the framework of the IPO of MAD 300 per share and this, taking into account our valuation which comes out at a target price of MAD 340”, indicates BKGR in a snapshot initiation coverage.

The levels of (P/E – price-to-earnings) on the basis of the introductory price are estimated at 16.3x in 2023 (compared to 16.1x for the market) before improving to 10.8x in 2024 , says the same source.

“Given the current weakness of the medical offer in Morocco, the health sector has an insufficiently exploited growth potential. The implementation of a proactive government strategy aimed at extending the medical coverage of base and improve access to health care should facilitate its realization”, notes BKGR.

And to continue that AKDITAL, with its notoriety and proven expertise, has established itself as a benchmark player in health care in Morocco with a multidisciplinary offer, an important territorial network with 17 establishments in 6 cities and a litter capacity , representing 15% of the national private supply.

In the medium term, the group plans to strengthen its position at regional and continental level through geographic expansion in Africa over the next 5 years by duplicating its organizational and operating model.

In addition, BKGR indicates that in view of the structure of the offer, the shares resulting from this IPO should be listed on the 1st line, thus giving right to distributions of profits from the date of completion of the operation. In this context, the new shareholders should benefit from a dividend of 4.4 dirhams (post-split), ie a D/Y of 1.5% on the basis of a price of 300 MAD/Share.

In order to materialize its strategic orientations, namely the diversification of its portfolio of specialties and the strengthening of its territorial network, the AKDITAL Group has started a major investment program that should ultimately allow it to increase its income substantially.

The AKDITAL Group is the first operator in the medical sector to join the Casablanca listing, allowing de facto to diversify the portfolio of investors.

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