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The Ghabbour family, one of Egypt’s wealthiest business dynasties, has seen the value of its controlling stake in GB Corp. drop by more than $46 million after a steep decline in the company’s share price on the Egyptian Exchange.
GB Corp. shares drop, family wealth slips
The family controls 63.4 percent of the automaker—about 688.2 million shares. That stake, once valued at EGP17.37 billion ($360.71 million), has fallen to EGP15.14 billion ($314.42 million), wiping out EGP2.23 billion ($46.31 million) in just over two weeks.
The setback marks a sharp reversal from only weeks earlier, when the family’s fortune swelled by more than $51 million between July 1 and Aug. 28 as GB Corp. shares rallied. That surge, fueled by optimism around the company and stronger sentiment in the broader Egyptian stock market, has now faded as economic challenges weigh on investors.
Reversal after strong summer rally
Founded in 1985 by the late auto magnate Raouf Ghabbour, GB Corp. has become one of the biggest automotive firms in the Middle East and North Africa, with operations that range from assembling cars to distributing them. The Ghabbour family still runs and guides the company from Cairo, where it is based.
Shares of GB Corp. have fallen 12.84 percent in the past 17 days, sliding from EGP25.24 ($0.5242) on Aug. 31 to EGP 22 ($0.4569) by mid-September. The pullback has pushed the automaker’s market capitalization below $500 million, dealing a heavy blow to shareholders.
Shares advance 23.6% year-to-date
Year-to-date, its shares have returned 23.6 percent. A $100,000 investment in January would now be worth about $123,600—evidence of the company’s resilience despite near-term volatility. For the Ghabbour family, however, the latest decline serves as a reminder of the risks tied to their outsized stake in one of Egypt’s most closely watched companies.
