MBC Group received the market regulator’s approval on November 21 to list its shares on the Tadawul exchange.
MBC Group has completed the Participating Parties’ book-building process, culminating in the determination of the Final Offer Price for its Initial Public Offering (IPO). The Final Offer Price has been established at SAR 25 per share, resulting in a market capitalisation of SAR 8.3bn ($2.2bn) at the time of listing. The Offer Price range, initially set between SAR 23 and SAR 25, garnered significant investor interest during the book-building process, ultimately leading to the Final Offer Price being fixed at SAR 25. The successful offering raised gross proceeds of approximately SAR 831m ($222m).
The book-building process witnessed remarkable support from investors in the Kingdom of Saudi Arabia (KSA), the broader regional landscape, and international investors. This overwhelming demand resulted in an impressive order book totalling SAR 54.5bn ($14.5bn), showcasing a subscription coverage of approximately 66 times the total offered shares.
The broadcaster is selling 33.25m new ordinary shares, equivalent to 10% of its total issued share capital, in the IPO.
The company’s shares will start trading on the Saudi Exchange’s main market following the “completion of the IPO and listing formalities” with the Capital Market Authority, MBC said.
Sam Barnett, Chief Executive Officer of MBC Group, said: “The demand from investors reflects the high trust they have placed in MBC Group’s ability to shape the future of media and entertainment in Saudi Arabia, the MENA region, and beyond. The response highlights investors’ recognition of our strong brand, expansive reach, diverse and high-quality content portfolio, as well as the significant potential for growth which is underpinned by Shahid. We are encouraged by this vote of confidence and look forward to delivering more engaging experiences to our loyal audience of 150m viewers per week as we embark on this exciting new phase.”
Following the completion of the Offering, the current shareholders will collectively retain 90% of the company’s share capital. Post-listing, the company is anticipated to have a free float of 10% of its share capital.
The Offer Shares are scheduled to be listed and traded on the Saudi Exchange’s Main Market, subject to the completion of the IPO and listing formalities with the Capital Market Authority (CMA) and the Saudi Exchange.
HSBC Saudi Arabia, JP Morgan Saudi Arabia, and SNB Capital will serve as collaborative financial advisers, bookrunners, and underwriters for the IPO.
In a recent statement, MBC outlined the utilisation of funds generated from the IPO, emphasising their allocation towards repaying outstanding debts, enhancing liquidity, financing working capital requirements, supporting content expenditure on the Shahid video streaming platform, and investing in new initiatives.
Saudi Arabia’s government owns 60% of the broadcaster, while Waleed Al-Ibrahim, the founder and chairman, owns the remaining stake.
