Casablanca, July 5, 2025 – The Moroccan Capital Market Authority (AMMC) has approved a MAD 2.2 billion capital increase by TGCC S.A., a leading construction and infrastructure group. The operation will consist of the issuance of 3 million new shares at a unit price of MAD 725, with the subscription period scheduled from July 14 to 18, 2025.
This capital increase serves a dual strategic purpose: to fully repay the bridge and term loans used to acquire a 60% stake in STAM Group, and to increase TGCC’s free float, thereby enhancing liquidity and broadening access to institutional and retail investors.
Strategic Objectives and Financial Rationale
The transaction enables TGCC to deleverage its balance sheet by reimbursing MAD 2.2 billion in acquisition-related debt, divided equally between a short-term bridge loan and a medium-to-long-term credit facility.
Simultaneously, expanding the company’s share capital will facilitate a more diversified shareholder base and improved market visibility, which TGCC views as a critical step to support its long-term ambitions.
TGCC’s growth trajectory is underpinned by a robust order backlog, which stood at MAD 10.2 billion at the end of 2024, and is projected to grow to MAD 18.4 billion in 2025 and MAD 18.6 billion in 2026. This momentum is driven by large-scale infrastructure and real estate projects, particularly in preparation for the 2030 FIFA World Cup, which Morocco will co-host.
Growth Outlook and Pro Forma Performance
According to pro forma financial estimates (excluding synergies and future growth levers), TGCC expects:
Consolidated revenue to grow from MAD 11.76 billion (2024) to MAD 13.58 billion (2026), representing a 7.5% CAGR
Net profit attributable to the Group (RNPG) to reach MAD 891 million by 2026, a 14.3% CAGR
However, management emphasizes that these forecasts do not yet reflect potential upside from:
Synergies with STAM
African subsidiaries ramping up
Saudi market expansion, aligned with Vision 2030
Investment Strategy and Capital Allocation
TGCC plans to deploy a consolidated investment budget of MAD 3.05 billion over 2025 and 2026. This includes the STAM acquisition and a series of equipment purchases through lease financing. Excluding the acquisition, investments will represent around 2.1% of projected revenue, slightly above the 1.9% average between 2022 and 2024, indicating a balanced approach between organic growth and strategic expansion.
Deal Structure and Advisory
The transaction is led by Attijari Finances Corp, acting as global coordinator and financial advisor. CFG Bank and Valoris Corporate Finance serve as co-advisors.
Outlook
TGCC’s capital increase aligns with its long-term strategy to strengthen its financial profile, capitalize on regional infrastructure demand, and enhance shareholder value. As Morocco prepares for major international events and regional economic shifts accelerate, the group is positioning itself as a key player in large-scale construction and development projects across Africa and the Middle East.
