Ghabbour family's GB Corp stake declines by $15.6 million in 28 days

Omokolade Ajayi -
Key Points
  • The Ghabbour family’s 63.4% stake in GB Corp. lost $15.64 million in value over the past 28 days, reflecting a 7.39% share price drop.
  • GB Corp.’s market capitalization now stands below $310 million, with shares falling from EGP15.29 to EGP14.16 since Oct. 23.
  • Year-to-date, GB Corp.’s stock is up 68.77%, but devaluation limits foreign investors' returns to just 4.89%, highlighting exchange rate challenges.

The Egyptian multimillionaire Ghabbour family has faced a significant setback, with the market value of their controlling 63.4 percent stake in GB Corp. falling by more than $15 million over the past 28 days. This marks a sharp reversal from gains recorded just weeks earlier.

The family’s stake, equivalent to 688,207,000 shares, declined by EGP777.67 million ($15.64 million), following a 7.39 percent drop in GB Corp.’s share price on the Egyptian Exchange (EGX).

The shares declined from EGP15.29 ($0.3087) on Oct. 23 to EGP14.16 ($0.2879) as of Nov. 20, dragging the company's market capitalization below $310 million.

Ghabbour stake drops amid market volatility

The downturn offset the gains achieved between Sept. 17 and Oct. 11, when the Ghabbour family’s stake value rose by $12.33 million during a brief market rally. This fluctuation underscores the volatility plaguing Egypt’s automotive sector and broader equity markets.

Despite the slump, the Ghabbour family remains one of the wealthiest investors on the EGX, with their control of GB Corp. securing their position in Egypt's industrial landscape, even as currency volatility and market pressures affect shareholder value.

Dollar returns hit by devaluation

Founded in 1985 by the late Raouf Ghabbour, GB Corp. remains a major player in the automotive sector across the Middle East and North Africa. 

Year-to-date, GB Corp.’s stock has surged 68.77 percent, driven by robust local demand for automobiles. However, the Egyptian pound’s devaluation has severely limited returns for foreign investors, reducing dollar-denominated gains to just 4.89 percent. 

A $100,000 investment in GB Corp. shares at the beginning of 2024 would now yield a profit of only $4,888, reflecting the toll of exchange rate pressures on international stakeholders.