In short
- A capital increase creates shares and can bring money to the company.
- A stock split divides each share and brings in no money.
- A split alone does not change the total value you hold.
The capital increase
The company issues new shares to raise funds. If you do not take part, your share of the capital can fall: this is dilution. A made-up example: you have 100 shares out of 1,000, or 10%. After 250 new shares are issued, you hold 100 out of 1,250, or 8%.
To protect shareholders, an offer can include a pre-emptive right, which gives them priority. This right can also be removed.
A real example: according to Boursenews, Risma issued 1.5 million shares at 300 dirhams, or 450 million dirhams, with the pre-emptive right removed. Subscription ran from January 26 to 30, 2026.
Free shares
The company turns part of its reserves into capital and hands out new shares. No new money comes in and the price adjusts. A made-up example: 1 free share for every 10 held. A share at 110 dirhams then falls to about 100 dirhams. The total value of 1,100 dirhams stays about the same.
The stock split
Each share is divided into several. The number of shares rises and the price falls in the same proportion.
A real example: according to Boursenews, Managem divided its nominal value by ten on July 27, 2026, bringing it to 10 dirhams for 118,646,760 shares. The reference price is the last price divided by ten.
| Made-up example | Before | After a 10-for-1 split |
|---|---|---|
| Number of shares | 10 | 100 |
| Price | 1,000 MAD | 100 MAD |
| Total value | 10,000 MAD | 10,000 MAD |
A share that costs less in dirhams is therefore not “cheaper” in terms of value. The operation can make the stock easier to access, but it creates no wealth on its own.
Comparison
| Operation | New money for the company? | Possible dilution? |
|---|---|---|
| Capital increase | Yes | Yes |
| Free shares | No | No, if everyone receives them |
| Split | No | No |
Frequently asked questions
Do I have to do anything for a split?
Usually, your shares are adjusted on your account by the intermediaries. Your brokerage firm can confirm this.
Where can I find the details of an operation?
In Casablanca Stock Exchange notices, company statements and, where relevant, the document approved by the AMMC.
Sources
This article is for information and educational purposes only. It is not investment advice or a recommendation to buy or sell any security. Investing in shares involves a risk of capital loss. Check figures against official sources (Casablanca Stock Exchange, AMMC) and consult a licensed professional. Read the full disclaimer.
