With the recent surge in the stock price of Société Générale des Travaux du Maroc (SGTM) following its historic initial public offering (IPO), M'Hammed Kabbaj, the CEO, has seen his wealth soar to an impressive $1.72 billion, as reported by h24info.ma. This remarkable ascent has placed Kabbaj among Morocco's elite, marking his entry into the billionaire ranks. He holds 22,200,000 shares of SGTM, which constitutes approximately 37% of the company's equity, according to the shareholder table published in the prospectus approved by the Moroccan Capital Market Authority (AMMC) prior to the IPO. With SGTM's closing price at 715 dirhams, this stake equates to around 15.87 billion dirhams, translating to approximately $1.72 billion based on a conversion rate of 9.24 dirhams per dollar.
However, despite this substantial fortune, Kabbaj's name does not yet appear in the major global wealth rankings, such as those compiled by Bloomberg and Forbes. This absence can be attributed to the fact that SGTM remained a private entity for over fifty years, making it challenging to publicly assess the Kabbaj family's stake in the company. Founded in 1971 by M'Hammed Kabbaj and his elder brother Ahmed, SGTM has established itself in a market that was once dominated by French and international firms. Over the years, the company has been involved in a range of significant projects, including the Rabat wholesale market, Mohammed V Airport, Hassan II Mosque, and the headquarters of OCP and the Ministry of Foreign Affairs in Rabat.
SGTM is currently engaged in numerous large-scale initiatives, such as the Dakhla Atlantique port, the upcoming Hassan II stadium, the new terminal at Mohammed V Airport, and the high-speed rail line connecting Marrakech and Kenitra. The company's recent IPO is described as a historic milestone for SGTM. Following the death of Ahmed Kabbaj in January 2019, M'Hammed Kabbaj retained the presidency of SGTM, with Ahmed's son, Hamza Kabbaj, serving as the deputy CEO. At just 45 years old, Hamza oversaw the record-setting IPO, which saw SGTM sell 20% of its capital at 420 dirhams per share, raising approximately 4.8 billion dirhams and valuing the company at 25.2 billion dirhams. The demand for shares was overwhelming, totaling over 171.1 billion dirhams from 171,377 subscribers, including institutional and individual investors, leading to a subscription rate that exceeded 34 times.
Prior to the IPO, M'Hammed Kabbaj owned 28.2 million shares, or 47% of the capital, but he sold 6 million shares, now retaining 22.2 million shares, which corresponds to 37% of the capital. Since the shares began trading on December 16, they have appreciated by approximately 70%. At the IPO price, Kabbaj's stake was valued at just over $1 billion, but with the stock's recent rise to 715 dirhams, the theoretical value of his shares has increased by about $709 million. Nevertheless, as noted by Billionaires Africa, this valuation cannot be immediately converted into liquid assets due to a shareholder agreement signed on November 14, which includes a three-year lock-up period, extending until December 2028, with some exceptions for transfers within the family and holding structures.
The $1.72 billion figure represents only Kabbaj's publicly traded stake in SGTM and does not provide a complete picture of his overall wealth, which may include personal assets and interests in various sister companies such as Novacim, Novacimbeton, Caritek, Infrapower Ometec, Infrawood, and SAVM, whose capital distribution is not detailed in the IPO documents. With its current share price of 715 dirhams, SGTM boasts a market capitalization of 42.9 billion dirhams, approximately $4.64 billion. By the end of 2024, SGTM, which boasts completed projects exceeding 1,000, had a workforce of over 21,000 and operated a fleet of 2,500 machines across six other African countries, including Senegal, Ivory Coast, and Burkina Faso. Ultimately, M'Hammed Kabbaj stands as a newly recognized Moroccan billionaire with a wealth that is now quantifiable in public markets, despite his absence from major international wealth rankings.
