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Saudi broadcaster MBC Group's initial public offering (IPO) on the Saudi Exchange (Tadawul) has attracted significant investor interest, reaching $14.5 billion in orders. Priced at the top of the range at SAR 25 per share, the offering was oversubscribed by 66 times, demonstrating robust investor demand. MBC plans to raise SAR831 million, implying a market valuation of approximately SAR 8.3 billion at listing. The IPO proceeds will be used to repay debt, enhance financial flexibility, and invest in new content for its streaming platform Shahid and other initiatives.
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MBC, the major media and entertainment company in the MENA region, with headquarters in Riyadh, plans to list on Tadawul in 2024. The IPO signals a healthy investor appetite for listings in the Middle East, standing in contrast to global IPO trends. MBC reported 2022 revenues of SAR3.49 billion, with Shahid contributing to revenue growth. The broadcaster's main segments include TV broadcasting, Shahid, a MENA video streaming platform, and MBC Studios, involved in drama series, movie production, and other media ventures.
Why it matters
In the broader MENA IPO landscape, the region has raised $8.4 billion through IPOs this year, down 54% compared to the previous year. Despite a decrease in proceeds, the IPO pipeline remains positive, with notable offerings like Dubai Taxi Company and PureHealth generating substantial investor interest. The IPO frenzy in the region contrasts with the subdued IPO activity observed in other global markets.
