MBC Group, the Middle East’s largest broadcaster, has received overwhelming demand for its initial public offering (IPO) in Saudi Arabia. Orders for the IPO exceeded the available shares, highlighting the strong demand for regional listings. Institutional investor books were quickly filled, indicating that demand exceeds the deal size. MBC is offering a 10% stake in the Saudi IPO, valuing the company at up to $2.2 billion. The IPO is expected to raise 831 million riyals ($222 million) at a price range of 23 riyals to 25 riyals per share.
MBC Group, founded in London in 1991, was the first privately-owned pan-Arab satellite TV group before the Saudi government acquired a 60% stake. The remaining shares are held by founder and chairman Waleed Al Ibrahim, one of the wealthiest businessmen in Saudi Arabia.
Despite market volatility caused by the recent conflict between Israel and Hamas, Saudi Arabia’s IPO market has remained robust. This year, approximately $3.2 billion has been raised through Saudi listings, a 53% decrease compared to the previous year. However, the IPOs in the Persian Gulf region still account for over a third of the total listing proceeds in Europe, the Middle East, and Africa.
MBC Group owns 13 free-to-air TV channels and operates the largest video-streaming service in the Middle East and North Africa, called Shahid. Although Shahid has been contributing to MBC’s revenues, it has yet to turn a profit. The proceeds from the IPO will be used to repay debt, enhance financial flexibility, and invest in new content for Shahid and other initiatives.
The pricing for the IPO is scheduled for December 12, with retail buyers able to bid from December 14-18. The exact trading date is yet to be determined but is expected to be in 2024. Financial advisers, bookrunners, and underwriters for the IPO include HSBC Holdings Plc, JPMorgan Chase & Co., SNB Capital, and GIB Capital.
Waleed Al Ibrahim, the chairman of MBC Group, was previously detained in Riyadh’s Ritz Carlton as part of an anti-corruption campaign by the Saudi government. After the government’s intervention, it acquired a 60% stake in MBC, while Al Ibrahim retained his 40% share. MBC Group later moved its headquarters to Dubai and then to Riyadh, the capital of Saudi Arabia.