SGTM Opens New Horizons in the Stock Market with the Largest IPO in Two Decades
Follow-Up
The SGTM Group, one of the leading players in Morocco’s construction and infrastructure sector, is preparing to enter the Casablanca Stock Exchange after receiving official approval from the Moroccan Capital Market Authority under number VI/EM/037/2025 dated November 17, 2025, paving the way for the largest listing since 2004.
The operation involves offering 20% of the company’s capital, valued at up to 5.04 billion dirhams, during a subscription period from December 1 to 8, 2025, until 3:30 PM. The share price has been set at 380 dirhams for the public and 420 dirhams for institutions, with a preferential rate of 340 dirhams for employees and retirees.
Founded in 1972, SGTM is now an independent Moroccan group that has played a crucial role in constructing road networks, bridges, dams, industrial facilities, hospitals, universities, and other structural projects. Over the decades, it has completed more than a thousand projects and employs over 21,000 employees as of the end of 2024.
The group also operates in several African countries such as Senegal, Ivory Coast, and Burkina Faso, as part of a growing continental expansion strategy.
Analysts, led by BMCE Capital Global Research, believe that SGTM’s listing holds significant profit potential, estimating the theoretical share price at 491 dirhams, indicating a possible gain of up to 44% for investors.
This evaluation is based on:
- A strong order book of 37.05 billion dirhams as of June 2025, providing clear visibility for the upcoming years.
- Continuous improvement in profitability thanks to high value-added EPC projects.
- An attractive dividend policy, which could reach 60% of net profits between 2025 and 2031.
The difference between the subscription price and the potential value of the share is a key factor in the attractiveness of the offering for individual investors.
This listing marks a significant event for the Moroccan capital market, occurring in the context of a trading revival and increasing interest in the infrastructure sector as a key driver of economic growth.
Through this operation, SGTM aims to reinforce its financial structure, expand its shareholder base, and establish more transparent governance, allowing it to solidify its position as a major national and African player. The listing also represents a significant transition for a family-owned group that has been operating for over fifty years.
However, the success of the post-listing phase depends on the group’s ability to execute its projects and convert the large order book into actual financial results. The stock performance is also tied to fluctuations in the economic environment, the pace of large project completions, and risks associated with the construction sector.
The operation presents a promising investment opportunity but requires careful monitoring and a clear understanding of the risks inherent in the public works sector.
