SGTM prepares Casablanca IPO to fund $3.4 billion construction boom

Saturday 08 November 2025 - 08:20

By: Dakir Madiha

SGTM prepares Casablanca IPO to fund $3.4 billion construction boom

Moroccan construction giant SGTM is gearing up for an initial public offering (IPO) on the Casablanca Stock Exchange as it seeks funding to support a record-breaking $3.4 billion order book. The company, which has secured contracts worth MAD 34 billion as of September, aims to sustain its rapid expansion and capitalize on Morocco’s infrastructure boom.

“We are preparing SGTM to be IPO-ready, and we are close in every aspect,” said Hamza Kabbaj, SGTM’s Director General, in an interview with Bloomberg. He emphasized that a listing would facilitate access to innovative financing solutions and increase the scale of the company’s funding capabilities. SGTM also plans to issue project bonds and explore private debt markets to fuel its growth.

World-class stadium projects and 2030 World Cup boost

A centerpiece of SGTM’s operations is the construction of the Hassan II Stadium, located 35 miles east of Casablanca. With a capacity of 115,000 seats, it will be one of the world’s largest football venues and a focal point for the 2030 FIFA World Cup. The company also recently completed the renovation of Rabat’s Moulay Abdellah Stadium in September, further cementing its role in Morocco’s sports infrastructure development.

The 2030 World Cup is driving an estimated 15% increase in SGTM’s business, contributing to the company’s expected revenue of MAD 14 billion ($1.4 billion) in 2025. Last year, SGTM achieved an annual growth rate exceeding 25%, with revenues climbing from MAD 8.5 billion ($850 million) in 2023 to MAD 11 billion ($1.1 billion) in 2024.

“The 2030 World Cup is an accelerator of infrastructure development in the country,” noted Kabbaj. However, the surge in demand also presents challenges, including a shortage of skilled labor and rising material costs, which highlight the need for financial innovation and operational flexibility.

Expanding beyond Morocco

SGTM is also setting its sights on international markets, particularly in the Middle East. The company is targeting projects in Saudi Arabia, host of the 2034 FIFA World Cup, leveraging its expertise in large-scale infrastructure projects. “With the experience we have now accumulated in Morocco, it will be a natural evolution for us to return and become an active player, particularly in Saudi Arabia,” Kabbaj said.

A legacy of iconic projects

Founded in 1971 by Ahmed and M’Hamed Kabbaj, SGTM has played a pivotal role in Morocco’s infrastructure history. Its portfolio includes landmarks such as Casablanca’s Twin Center towers, the first terminal of Mohammed V International Airport, the Nador West Med deep-water port, and the Mohammed VI Polytechnic University (UM6P) in Rabat.

Today, SGTM employs approximately 25,000 people and is involved in an array of major projects across Morocco. These include the UM6P campus in Benguerir, the extension of Stellantis’ industrial site in Kenitra, the Rabat-Marrakech high-speed rail line, and numerous dam constructions.

Morocco’s infrastructure boom

Morocco is poised to invest MAD 1,400 billion ($140 billion) by 2030 in infrastructure and green energy projects, according to AGR, the research unit of Attijariwafa Bank. These investments encompass the extension of the high-speed rail network, port expansions, desalination plants, and green hydrogen production facilities, in addition to stadium construction.

With its IPO plans and strategic focus on innovation, SGTM is positioning itself as a key player in Morocco’s ambitious development agenda and beyond.