Dubai: The Saudi media giant MBC Group has set the IPO price at SR25 - at the very top end of the range that was put out last week. This sets the stage for one of the year's biggest Saudi and GCC stock market offerings.
The final offer price implies a market cap of SR8.3 billion ($2.2 billion) at the time of listing on Saudi Tadawul.
Saudi nationals, foreign residents in the Kingdom and GCC nationals will be able to subscribe for shares in the retail offering between December 14 to 18.
"The book-building process was highly successful drawing considerable support from KSA, regional and international investors, resulting in an order book of SR54.5 billion ($14.5 billion)," said MBC in a statement. "The robust investor demand led to a subscription coverage of approximately 66x the total offered shares."
The demand from investors reflects the high trust they have placed in MBC Group's ability to shape the future of media and entertainment in Saudi Arabia, the MENA region, and beyond.
On listing, the company will have a free float of 10 per cent of its share capital.
“The demand from investors reflects the high trust they have placed in MBC Group's ability to shape the future of media and entertainment in Saudi Arabia, the MENA region, and beyond," said Sam Barnett, CEO.
"The response highlights investors' recognition of our strong brand, expansive reach, diverse and high-quality content portfolio, as well as the significant potential for growth which is underpinned by 'Shahid' (the video streaming platform). We are encouraged by this vote of confidence (from the book-building) and look forward to delivering more engaging experiences to our loyal audience of 150 million viewers per week as we embark on this exciting new phase.”
SR 54.5 bWhat the institutional book-building process generated in order book, resulting in a subscription coverage of approximately 66x
Heavy Saudi IPO flows
MBC will cap a good year for Saudi IPOs - The Kingdom had seen a total of 34 compared to 36 IPOs in 2022.
"In terms of subscriptions, Ades Holding was leading with total orders of $76.5 billion (or an oversubscription of 62.8 times)," said Junaid Ansari, Director of Investment Strategy and Research at Kamco Invest.
"SAL Saudi Logistics was next with total orders of $49 billion (oversubscription of 72.2 times), followed by First Milling with orders of $18 billion (oversubscription of 67.6 times)."
Ades shares are up almost 60 per cent since listing while SAL Saudi Logistics and First Milling are higher 38.5 per cent and 21 per cent, respectively. "We see significant potential in Saudi market for 2024 as economic growth remains centerstage for the government," said Ansari. "The government has been on track with execution of large-scale projects and with a strong project pipeline, we believe that the market can see many new companies to raise capital."
The MBC Group IPO in numbers:
- The offer has a primary offering of 33.25 million new ordinary shares, representing 10% of the share capital.
- The offering raised gross proceeds of around SR831 million, implying a market cap of SR8.3 billion at listing.