The long-awaited initial public offering (IPO) of shares in Lyonnaise des Eaux de Casablanca (Lydec)was launched in early July. Investors were given from 4-8 July to subscribe to the 1.12 million shares on offer, representing 14 per cent of the company's capital. The target price band is MD 210-MD 240 ($23.1-26.4) a share, with the price to be set on 13 July and shares to be listed on 18 July. The IPO is expected to raise up to MD 2,000 million ($222 million)
Shares will be offered on the Bourse de Casablanca in three tranches: Lydec employees will take 130,000-168,000 shares; orders of up to MD 1 million ($0.11 million) will account for 476,000-514,000 shares; and 476,000 will be reserved for subscriptions over MD 1 million. Acquisitions will be backdated to 1 January 2005. Lydec, a subsidiary of France's Suez Environnement, in 1997 signed a 30-year delegated management contract for water, sanitation and electricity infrastructure serving the 4.5 million inhabitants of the kingdom's largest city. The flotation, under consideration for more than two years, is the first official listing of a water and electricity distribution company on the Casablanca exchange (MEED 21:1:05).
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