MBC Group, the largest broadcaster in the Middle East, has finalised its offer price for shares at SR25 each, resulting in a market capitalisation of SR8.3 billion ($2.2 billion) upon listing.
The offer price range was set at SR23 to SR25, but due to a highly successful book-building process, the final offer price was set at SR25. This offering generated gross proceeds of around SR831 million ($222 million).
The book-building process was highly successful, drawing considerable support from Saudi Arabia’s regional and international investors, resulting in an order book of SR54.5 billion ($14.5 billion), the firm said in a statement on Tuesday. The strong demand from investors resulted in subscription coverage of approximately 66 times the total number of shares offered.
Saudi Arabian nationals, foreign residents in the Kingdom of Saudi Arabia and GCC nationals will be able to subscribe for shares in the retail offering from December 14 to 18.
“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,” said Sam Barnett, CEO of MBC Group. “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.”
The offering involves a primary offering of 33.25 million new ordinary shares, equivalent to 10% of the company’s share capital. All the offer shares have been provisionally allotted to the participating entities from the book-building process. However, the joint financial advisors, in collaboration with the company, retain the right to adjust the allocation to participating parties to 29.92 million shares (90% of the offer shares) based on subscriptions from individual investors.
Upon completion of the offering, the existing shareholders will collectively hold 90% of the company’s share capital. Following the listing, MBC Group is anticipated to have a free float of 10% of its share capital.
