Advanced Television

MBC shares jump 30% on debut

January 9, 2024

By Chris Forrester

MBC Group’s Saudi Arabia stock exchange IPO debut raised $222 million with its debut, and early investors saw an immediate 22 per cent jump in the share price helped by a significant over-subscription in demand.

MBC is the leading – some might say dominant – Arab language broadcaster over the Middle East.

The MBC IPO involved a primary offering of 33,250,000 new ordinary shares, constituting 10 per cent of the company’s share capital post the issuance. Institutional investors secured 90 per cent of the offered shares, while the remaining 10 per cent went to private investors.

The demand for MBC’s shares was said to be robust, attracting a diverse array of local, regional, and international investors. The institutional book-building process generated a substantial order book of an impressive SAR 54.5 billion ($14.53 billion), resulting in a subscription over-demand of approximately 66-times.

The final IPO 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 831 million ($222 million), and thus creating an implied market capitalisation of SAR 8.3 billion ($2.2 billion).

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.

Sam Barnett, CEO 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.”

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