MBC Group generated $222m in its initial public offering.
MBC Group has officially listed its shares on the Main Market of the Saudi Exchange, following the successful completion of its Initial Public Offering (IPO). The company is now trading under the ticker symbol: MBC Group.
MBC Group has become the first new listing in the Kingdom’s Tadawul All Share Index in 2024.
The IPO involved a primary offering of 33,250,000 new ordinary shares, constituting 10% of the company’s share capital post the issuance. Institutional investors secured 90% of the offered shares, while the remaining 10% went to individual investors. The demand for MBC’s shares was robust, attracting a diverse array of local, regional, and international investors. The institutional book-building process generated a substantial order book of SAR 54.5bn ($14.53bn), resulting in a subscription coverage of approximately 66x.
The final offering price was set at SAR 25 per share ($6.67), at the upper end of the initially announced price range. MBC Group successfully raised SAR 831m ($222m), establishing an implied market capitalisation of SAR 8.3bn ($2.2bn) at the time of listing.
Waleed bin Ibrahim Al Ibrahim, Chairman of MBC Group said: “Today, we celebrate MBC Group’s monumental moment of becoming a publicly listed Company trading on one of the top 10 stock exchanges in the world, the Saudi Exchange. We are proud of the significant interest our IPO has garnered from investors both in the Kingdom and in other markets. This is a reflection of the investment community’s conviction in MBC’s brand, the attractiveness of our unique business offering, and our growth potential.
“MBC Group is deeply entrenched within the Saudi community and others across the wider Arab world, and we value the trust that our audience and other partners have placed in us over the years. Their loyalty has contributed to our success to date, culminating in this moment. Also, as one of the most influential media and entertainment powerhouses in the Kingdom, we recognise the significant role we play, and will continue to play, to further develop and grow the media and entertainment sector in the Kingdom. We are committed to delivering excellence and to contributing to the Saudi Vision 2030.
“On behalf of the Board of Directors, I would like to extend my gratitude to the MBC family that ensured a successful IPO, and to our entire network of stakeholders who have supported us over the years until this very moment. And to our new shareholders, welcome on board, we look forward to unlocking MBC’s greater potential, together.”
Sam Barnett, Chief Executive Officer of MBC Group, added: “Commencing trading on the Saudi Exchange is a landmark and proud moment for MBC. Through this IPO we welcomed new shareholders to the Company and raised the capital needed to take us through our next phase of growth, innovation, and impact.
“We have a clear roadmap guiding us through what the next phase of growth looks like, including growing the number of subscribers and viewers on Shahid, increasing advertising sales across our platforms, and expanding operations into exciting and promising sub-sectors including sports, music, gaming, and events.
“I would like to thank the MBC team for their unwavering commitment and dedication that brought us to this very proud moment. We remain steadfast in our commitment to unlock sustainable value for our shareholders and subscribers, audience, and other key partners. With thirty years of success leading us to this moment, we look forward to another thirty years of success.”
On November 21, the MBC Group received approval from the market regulator to officially list its shares on the Tadawul exchange, joining a wave of companies in the MENA region eager to capitalize on the booming listings trend in the equities market.
The company, with key operations spanning TV broadcasting, the Shahid video streaming platform, and MBC Studios, intends to utilise the funds raised from the offering for debt repayment, enhancing liquidity, and undertaking new initiatives to fortify its standing in the market.
