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Middle East media and entertainment giant MBC Group confirmed on Tuesday that it will proceed with an initial public offering (IPO) and list its shares on the Saudi Stock Exchange (Tadawul).
The Capital Market Authority (CMA) has approved the company’s application to float 33.25 million ordinary shares, representing 10% of its share capital.
No subscription date and offer price have been announced, although the CMA’s approval is valid for six months.
MBC’s share offering is the latest in a flurry of IPOs in the Gulf, most notably Saudi Arabia and the UAE, which are looking to strengthen capital markets and attract more investments. In 2022, businesses in the region raised more than $22 billion through IPOs.
Majority-owned by the Saudi government, MBC Group is one of the leading media and entertainment companies in the Middle East and North Africa (MENA) region, with its content reaching over 150 million people weekly.
The company said it will use the net proceeds of the share offering to repay outstanding debts, boost liquidity and invest in new initiatives to strengthen its market position.
“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,” said Waleed bin Ibrahim, Chairman of MBC Group.
“Through this offering, we are inviting investors to be part of a robust enterprise, well-reputed brand, underpinned by strong macro fundamentals and dynamic growth prospects.”
About the offering
The company’s shares will be offered for subscription to individual and institutional investors. The offer price will be determined at the end of the book-building period.
The shares will be listed and traded on Tadawul’s main market after the completion of the IPO.
Following completion of the offering, the current shareholders will collectively own 90% of the company’s share capital. MBC’s shareholders are the state-owned Al Istedamah Holding with a 60% stake and Waleed bin Ibrahim Al Ibrahim with a shareholding of 40%.
HSBC Saudi Arabia has been appointed as lead manager for the offering. The bank, as well as J.P. Morgan Saudi Arabia and SNB Capital have also been named financial advisors, book-runners and underwriters, according to a bourse filing on the Saudi bourse late Tuesday.
The company’s total revenue stood at SAR3.49 billion ($930 million) in 2022. It boasts of a 40% audience share in Saudi Arabia, which is 2.5 times more than its closest rival.
Its main business segments include TV broadcasting, video streaming platform Shahid, various media-related ventures and MBC Studios, which includes drama series and movies production.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
