Saudi broadcaster MBC Group has garnered $14.5B (SAR 54.5B) in investor orders for its initial public offering (IPO) on the Saudi Exchange (Tadawul).
The company priced the IPO at the top of the previously announced range, selling shares at SAR 25 and raising SAR 831M amid robust investor demand. The oversubscription reached 66 times, indicating a strong appetite for listings in the Middle East, contrasting with challenges faced by IPOs in other regions.
Sam Barnett, CEO of MBC Group, stated that the response underscores investors’ recognition of the strong brand, extensive reach, diverse and high-quality content portfolio, and the significant growth potential, supported by Shahid.
At the SAR25 per share price, the market valuation stands at approximately SAR8.3 billion at listing. MBC is offering 33.3 million shares, equivalent to 10 percent of the total issued share capital.
Insights into MBC’s IPO Journey: A Strategic Look at Stakeholder Ownership and Market Expectations
Upon listing, the current shareholders, Al Istedamah Holding and Waleed Ibrahim Al Ibrahim, will collectively own a 90 percent stake, with the expected trading debut on Tadawul anticipated in 2024.
Proceeds from the IPO will be used by MBC to repay debt, improve financial flexibility, and invest in new content for Shahid and other initiatives, according to Gulf Business.
Founded in London in 1991, MBC is a major media and entertainment company in the MENA region, reaching over 150 million people weekly. Despite the challenges faced by IPOs globally, the company reported revenues of SAR 3.49B ($930M) in 2022, with Shahid’s contributions increasing, although the platform has not yet turned a profit.
HSBC Holdings, JPMorgan Chase, and SNB Capital are the financial advisers, book-runners, and underwriters for the deal, while GIB Capital serves as a financial adviser to major shareholders.
In the MENA region, IPO activity has raised $8.4B this year, reflecting a 54 percent decline compared to the previous year. Nevertheless, the IPO pipeline remains positive, with companies like Dubai Taxi Company and PureHealth generating substantial investor interest.
