Morocco’s Clinic Operator Oncorad Announces Plans to Enter Casablanca Stock Exchange

Rabat – Moroccan clinic operator Oncorad has announced plans for an initial public offering (IPO) on the Casablanca stock exchange within three years to finance its expansion, according to CEO Redouane Samlali.

The move comes as demand for health services is expected to increase in the country, which is generalizing health insurance.

The company has just raised MAD 458 million ($45.5 million ) from private equity firms CDG Invest Growth and France’s Stoa, a capital increase that “is conducive to issuing an IPO in three years,” Samlali was quoted as saying in a report from Reuters.

Oncorad plans to spend MAD 3 billion to increase its facilities from 13 currently to 30 by 2026, the report adds.

Morocco’s private sector needs to create at least 700 additional private clinics this decade, he said, with most of the country’s existing clinics concentrated in Rabat and Casablanca.

Morocco’s private healthcare sector

Morocco’s Competitiveness Council issued a report sounding the alarm on the state of the private healthcare sector in Morocco.

In a report, the council stated that private hospitals are crucial to the market but lack proper regulation due to a scarcity of legislation.

The council pointed out that existing laws are scattered, making it difficult to regulate the sector effectively. Moreover, the public sector’s view of private hospitals as a minor player in the healthcare market is hindering progress in regulation.

A lack of investment in the sector is also holding back progress. According to the report, 43% of private hospitals in Morocco have a capital of MAD 1 million ($95,000), and only 13% have a market capitalization of more than MAD 10 million ($950,000).

The report identified the illegal hiring of medical staff from the public sector as another irregularity within the sector and revealed that five out of Morocco’s 12 regions hold 79% of private hospitals and 82% of hospital beds.

This scarcity of trained medical professionals is causing a deficiency of private hospitals in disadvantaged regions, while also reducing the efficiency of the public healthcare infrastructure.