Mediterrania Capital Partners partially exits TGCC through an IPO

Mediterrania Capital Partners (MCP), the Private Equity firm based in Malta and focused on growth investments for SMEs and mid-cap companies in North and Sub-Saharan Africa, announces the successful partial IPO of TGCC, one of its portfolio companies.

Founded in 1991 by Mohammed Bouzoubaa, TGCC has grown to become the national leader in the construction industry in Morocco, accounting for large projects that span several activity sectors such as residential, hospitality, commercial, industrial, administrative and infrastructure. The company has provided integrated design, engineering, procurement, construction and project management services in more than 1,000 projects. TGCC also operates in Gabon, Côte d’Ivoire and Senegal, and manages projects in other countries in Sub-Saharan Africa from Casablanca. Today, the company employs over 8,000 people.

In January 2018, a consortium of investors, led by Mediterrania Capital Partners and including DEG, Proparco and South Suez and Mediterrania’s MC III fund, acquired a stake in TGCC with the aim of supporting the company’s expansion plans based on growth trends in the construction sector in Morocco and Sub-Saharan Africa and driven by strong demand for residential and non-residential buildings coupled with increased government spending on infrastructures and energy.

During the past four years, the Mediterrania Capital Partners team have worked closely with TGCC’s management to take the company to the next level of growth and innovation, keeping a strong focus on sustainability aspects. TGGC’s shareholders launched the IPO process in 2021 to enable MCP to begin its exit process and increase its financial capabilities to fuel growth to the next milestones.

With a one-week subscription period closing on Friday 3^rd December, the IPO was significantly oversubscribed, highlighting the company’s attractiveness and strong fundamentals, and enabled the largest-ever Private Equity exit in the CSE.

The IPO consisted of a cash-out of 300 million Dirhams and a capital increase of 300 million Dirhams. This capital injection will enable TGCC to continue its expansion plans, both nationally and internationally.

Hatim Ben Ahmed, Managing Partner at Mediterrania Capital Partners, said: “In 2018 we saw a tremendous opportunity to invest in TGCC and implement our value creation model to help the company strengthen its position in the national market and continue to expand internationally. We have implemented strategies around verticalisation and also professionalised TGCC’s internal processes and governance. Today, TGCC is a very solid company that has managed to successfully overcome one of the most challenging periods in its history due to the Covid-19 pandemic, building the right foundations to continue its growth path, fuelled by increasing demand for contracting business across all African countries and particularly in Morocco.”

Albert Alsina, Mediterrania Capital Partners’ Founder and CEO said: “Led by Mediterrania’s team in Casablanca, our work with TGCC shows the excellence of our processes, from the identification and analysis of the asset’s potential, investment in and implementation of value creation and sustainability initiatives through to exit. Today, TGCC is a company with a clear vision that makes a major contribution to the development of Africa by supporting its economies and delivering a positive social and environmental impact. Through this IPO, we are very excited to open TGCC’s doors to the market and invite everyone to be part of this success story.”

Mediterrania Capital Partners’ Hatim Ben Ahmed (Managing Partner), Mohamed Ali Abdelhak (Partner) and Saâd Bendidi (Chairman and Partner) are members of TGCC’s Board of Directors.

About Mediterrania Capital Partners

Founded in 2013, Mediterrania Capital Partners is a dedicated Private Equity firm focusing on growth investments in SMEs and mid-cap companies in Africa with an annual turnover of €20 million to €300 million and expansion strategies into North and Sub-Saharan African markets.

Headquartered in Valletta and with offices in Abidjan, Algiers, Barcelona, Cairo, Casablanca, the company takes a proactive, hands-on approach to implementing the growth strategy of its portfolio companies by driving their Value Creation and ESG processes.

Mediterrania Capital Partners is a regulated financial investment manager licensed by the Malta Financial Services Authority (MFSA), the Financial Services Commission (FSC) in Mauritius and the Comisión Nacional del Mercado de Valores (CNMV) in Spain.