Introduction

Bank of Africa, the Casablanca-listed lender controlled by Moroccan billionaire Othman Benjelloun, plans to distribute more than 5.1 million free shares to existing investors. The move, funded entirely from the bank's existing reserves, will not require any new cash from shareholders.

What Happened

The bank will issue 5,122,834 new shares with a nominal value of MAD10 each, allocating one free-share right for every 43 shares held. Shareholders will not need to contribute additional capital. The operation, approved at an extraordinary general meeting on June 25, 2026, aims to convert accumulated reserves into formal share capital. New shares are set to begin trading on October 29, 2026, and carry dividend rights retroactive to January 1, 2026. A reference price adjustment will occur on October 22, 2026, when allocation rights detach.

Why This Matters

The capitalisation strengthens the appearance of Bank of Africa's capital base without bringing new money into the business. For investors, the proportional ownership stake remains largely unchanged, though the total number of shares in circulation increases. Benjelloun's continental banking empire spans 20 African markets, meaning the capital structure shift affects a wide regional network.

Key Takeaways

  • Over 5.1 million free shares will be issued from reserves, no new cash required.
  • One free-share right for every 43 existing shares held.
  • New shares begin trading October 29, 2026, with dividend rights from January 1, 2026.
  • Reference price will be adjusted to reflect the larger share base.
  • The move impacts Bank of Africa's regional network across West, Central, and East Africa.

Conclusion

Bank of Africa's free-share issuance is a capital-structure move that increases share count without raising fresh funds. Existing shareholders receive additional shares proportionally, while the market adjusts the reference price. The operation underscores the bank's regional significance under Benjelloun's leadership, with implications for investors across its African subsidiaries.