Final Pricing Press Release
12 December 2023G
MBC GROUP Announces Final Offer Price of Its Initial Public Offering
FINAL OFFER PRICE SET AT UPPER RANGE: The Final Offer Price has been set at SAR 25 per share, at the top of the previously announced price range of the IPO.
STRONG INVESTOR INTEREST DRIVES OVERSUBSCRIPTION: The institutional book-building process generated an order book of SAR 54.5 billion and resulted in a subscription coverage of approximately 66x.
GROSS PROCEEDS SET TO BOLSTER GROWTH: The Offering raised gross proceeds of approximately SAR 831 million, implying a market capitalization for the Company of SAR 8.3 billion at listing.
MBC GROUP (“MBC” or the “Company”), one of the leading media and entertainment companies in the Middle East and North Africa (“MENA”) region, announces the successful completion of the Participating Parties’ book-building process and the determination of the final offer price (the “Final Offer Price”) for its initial public offering (the “IPO” or the “Offering”).
The Final Offer Price has been set at SAR 25 per share, with a market capitalization of SAR 8.3 billion (USD 2.2 billion ) at listing. The Offer Price range was set at SAR 23 to SAR 25 and following a highly successful book-building process, the Final Offer Price has been set at SAR 25. The Offering raised gross proceeds of approximately SAR 831 million (USD 222 million1).
The book-building process was highly successful drawing considerable support from KSA, regional and international investors, resulting in an order book of SAR 54.5 billion (USD 14.5 billion1). The robust investor demand led to a subscription coverage of approximately 66x the total offered shares.
Sam Barnett, Chief Executive Officer of MBC GROUP, said,
“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. 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. We are encouraged by this vote of confidence 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.”
Confirmation of Offer Details
- The Final Offer Price for the Offering has been set at SAR 25 per share, meaning the Company will have a market capitalization of SAR 8.3 billion (USD 2.2 billion1) at listing.
- The total size of the Offering is SAR 831 million (USD 222 million1).
- The Offering comprises a primary offering of 33,250,000 new ordinary shares, representing 10% of the Company’s share capital (following the issuance of the Offer Shares and increase of the Company’s share capital). 100% of the Offer Shares have been provisionally allocated to the Participating Parties that took part in the book-building process (“Participating Parties”). In the event that Individual Subscribers subscribe for the Offer Shares allocated thereto, the Joint Financial Advisors, in coordination with the Company, shall have the right to reduce the number of Offer Shares allocated to Participating Parties to 29,925,000 shares, representing ninety percent 90% of the Offer Shares. The final number of Offer Shares allocated to the Participating Parties will be clawed back accordingly based on subscriptions from Individual Investors.
- Following completion of the Offering, the current shareholders (“Current Shareholders”) shall collectively own 90% of the Company’s share capital.
- Immediately following listing, the Company is expected to have a free float of 10% of its share capital.
- The Offer Shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the IPO and listing formalities with the CMA and the Saudi Exchange.
- Saudi Arabian nationals, foreign residents in the Kingdom of Saudi Arabia and GCC nationals (“Individual Investors”) will be able to subscribe for shares in the retail offering between 14 to 18 December 2023G at the Final Offer Price of SAR 25 per Offer Share through the appointed receiving agents which are Arab National Bank, Banque Saudi Fransi, Riyad Bank, and Saudi National Bank (collectively, the “Receiving Agents”).
- For more information about the IPO, please visit: https://mbc.net/ipo