Moroccan billionaire Othman Benjelloun’s Bank of Africa to issue 5.1 million free shares to investors

Bank of Africa, the Moroccan lender chaired by billionaire Othman Benjelloun, will issue more than 5.1 million free shares to investors as it moves part of its reserves into share capital.

The Casablanca-listed bank will raise its share capital by MAD51.23 million ($5.25 million) by issuing 5,122,834 new shares with a nominal value of MAD10 each, Morocco World News reported, citing a notice from the Casablanca Stock Exchange. Shareholders approved the plan at an extraordinary general meeting on June 25.

Existing investors will receive one allocation right for every 43 shares they hold. The operation requires no new cash from shareholders because it is funded from the bank’s reserves.

The rights will detach on Oct. 22, when the reference share price will be adjusted. They will start trading on Oct. 27 under the ticker ABOAG. The new shares will be delivered on Oct. 28 and admitted to trading the next day on the same line as the existing stock. They will carry dividend rights from Jan. 1, 2026.

The rights are scheduled to be delisted on Oct. 27, 2027.

The move adds to the bank’s capital base as it competes with Morocco’s two largest lenders. Bank of Africa rose two places to ninth among the continent’s 100 largest banks by Tier 1 capital in African Business’s 2026 ranking, with $3.84 billion. Attijariwafa Bank ranked third with $7.68 billion, while Banque Centrale Populaire placed sixth with $5.87 billion.

The bonus issue follows a stronger first half for the group. Bank of Africa lifted net income attributable to shareholders by 10% to MAD2.5 billion in the six months to June 30. Net interest income rose 7% and fee income climbed 10%, while the cost of risk fell 16% to MAD1.4 billion. Total assets grew 5% to MAD460 billion.

Its pan-African arm, BOA Holding, which runs banks across sub-Saharan Africa, raised net banking income 6% to 445 million euros in the same period, helped by an 11% rise in fee income.

Benjelloun, one of Morocco’s three billionaires on the Forbes list alongside Aziz Akhannouch and Anas Sefrioui, has led the bank for more than three decades. He is also a major shareholder, and his business interests span banking, insurance and other sectors across Africa.

Bonus share issues let companies reward shareholders and increase the number of shares in circulation without paying out cash. For Benjelloun, the issue raises the number of shares he holds without changing his percentage stake in the bank.