Saudi Arabia’s government owns 60% of the broadcaster, while Waleed Al-Ibrahim, the founder and chairman, owns the remaining stake.
MBC Group has officially announced its intention to proceed with an Initial Public Offering (IPO) and list its ordinary shares on the Main Market of the Saudi Exchange (Tadawul).
The Capital Market Authority (CMA) granted approval on November 21, 2023, for the registration of MBC’s share capital and the offering of 33,250,000 Ordinary Shares through a capital increase. This represents 10% of the company’s share capital after the issuance of the Offer Shares. The offering price will be determined at the conclusion of the book-building period.
Individual and institutional investors, including those outside the United States in compliance with Regulation S under the US Securities Act of 1933, will have the opportunity to subscribe to the Offer Shares. The net proceeds from the IPO will be allocated for various purposes, including the repayment of outstanding indebtedness, enhancing liquidity, financing working capital requirements, Shahid content expenditure, and investment in new initiatives.
Established more than 30 years ago, MBC has become a major media and entertainment force in the MENA region, reaching over 150m people weekly. The company operates in key segments such as TV broadcasting, the Shahid over-the-top (OTT) video streaming platform, MBC Studios for drama series and movie production, and other media-related ventures.
The Saudi government owns 60% of the company, which includes 20 TV channels broadcast across the Middle East.
Waleed bin Ibrahim Al Ibrahim, Chairman of MBC Group, said: “Today, MBC Group is proud to be one of the MENA region’s leading media and entertainment companies. With over 30 years of continuous growth owed to our significant investment in media, quality content generation and entertainment, we are prepared for our next phase of growth.
“Through the IPO, we aim to further grow our market position and audience reach, continue investing in our popular streaming platform, Shahid, and expand into promising entertainment verticals. While our heart remains entrenched in Arab culture, this is in line with our ambitions to continue evolving as a global media and entertainment powerhouse, while further deepening our commitment to realizing Vision 2030 by supporting the growth and development of the media and entertainment sector. Through this offering, we are inviting investors to be part of a robust enterprise, a well-reputed brand, underpinned by strong macro fundamentals and dynamic growth prospects.
“Our Board of Directors and the leadership team look forward to the opportunities ahead of us. With our sights set firmly on the future, our commitment remains to exceed shareholders’ expectations by delivering attractive returns.”
Sam Barnett, Chief Executive Officer of MBC Group added: “This IPO is a testament to our ambition to create a leading media group that enriches lives through content, interaction and entertainment. Over the decades, we have built a diverse platform portfolio which has accumulated a high audience share and generated an expansive reach. MBC is trusted by loyal audiences across the MENA region and we have earned this trust through a deep knowledge of our audiences and commitment to premium content creation.
“Captivating content, cutting-edge technologies and robust data are core to our business and combine to ensure a fantastic service for our viewership of 150 million viewers per week. Looking forward, we anticipate expansion through content diversification, new subscription models, targeted advertising and expanded geographic presence. We are also excited by the growth in new areas such as gaming and events.”
Upon the successful completion of the Initial Public Offering (IPO) formalities with the Capital Market Authority (CMA) and the Saudi Exchange, MBC GROUP’s Offer Shares are set to be listed and actively traded on the Main Market of the Saudi Exchange.
Post the Offering, the company’s share capital ownership structure will be divided, with current shareholders (“Current Shareholders”) collectively retaining a significant 90% stake. Al Istedamah Holding, holding 60%, and Waleed bin Ibrahim Al Ibrahim, holding 40%, represent the Current Shareholders.
The company is poised to have a 10% free float of the shares immediately after listing, offering investors an opportunity to participate in the exciting venture.
In the realm of financial advisory and underwriting, MBC Group has enlisted the expertise of HSBC Saudi Arabia, JP Morgan Saudi Arabia, and SNB Capital, all serving as Joint Financial Advisors, Joint Bookrunners, and Underwriters. Additionally, HSBC Saudi Arabia has been appointed as the Lead Manager for the Offering.
GIB Capital assumes the role of financial advisor to the substantial shareholders, adding another layer of strategic insight to the process.