Retail subscription to 3.33M shares of MBC starts on TASI today

Logo of MBC Group

Retail investors will start today, Dec. 14, subscription to about 3.33 million shares of MBC Group at SAR 25 each, as set by the book-building process.   

The subscription process for the retail tranche will run for five days until Dec. 18.  

The Capital Market Authority (CMA) approved, on Nov. 21, the company's request to float 33.25 million shares in an initial public offering (IPO).  

The company’s institutional offering, which ended last week, was 66x covered. 

The MBC IPO is the eighth this year, after Morabaha Marina and Mawarid Manpower Co. flotations on May 28, Jamjoom Pharmaceuticals Factory Co. (May 30), First Milling Co. (June 6), Lumi Rental Co. (Sept. 12), ADES Holding Co. (Sept. 26) and SAL Saudi Logistics Services Co. (Oct. 11).

Last year, the main market witnessed 18 IPOs, namely, East Pipes Integrated Company for Industry , Scientific & Medical Equipment House Co., Elm Co. , Al-Dawaa Medical Services Co. , Al Masane Al Kobra Mining Co. , Nahdi Medical Co. , Saudi Home Loans Co. , Retal Urban Development Co., Alamar Foods Co. , Naqi Water Co. , Arabian Drilling Co., Power and Utility Company for Jubail and Yanbu (MARAFIQ), Perfect Presentation for Commercial Services Co. (2P), Americana Restaurants International Plc (Americana Restaurants) , Riyadh Cables Group Co., AlSaif Stores for Development & Investment Co.'s (Alsaif Gallery) and Saudi Aramco Base Oil Co. (Luberef), in addition to Alinma Hospitality REIT Fund. 

Company Profile   

MBC was incepted in London in 1991 as an independent general entertainment channel (MBC1). It then relocated to Dubai Media City, UAE, in 2001, and opened its new headquarters in Riyadh in September 2022.

MBC Group runs a group of TV and radio channels such as MBC1. The group's main activities are free TV and radio broadcasting and supporting activities such as social media; managing and operating the live media service platform, which includes video streaming on the "Shahid" platform; production of series and films; and other businesses include interactive games, events, music and talent management.  

The group dominates the lion’s share of 40% of the TV audience for 10 years, more than double the competitors’ share.

The group is 60% owned by Istedamah Holding Co. (IHC), while Chairman Walid Al-Ibrahim holds the remaining 40%.  

MBC owns a network of 13 free TV channels and is the top broadcasting company in Saudi Arabia and Egypt.  

Subsidiaries  

The Company directly and indirectly owns 35 subsidiaries, including seven material subsidiaries and 28 non-material subsidiaries in Saudi Arabia, the UAE, Lebanon, Jordan, Egypt, Cyprus, Turkey, the British Virgin Islands, the Cayman Islands and Hungary.

Agreements inked with the government

MBC Group sealed a number of agreements with the Kingdom’s government (represented by IHC) by virtue of the strategic cooperation framework agreement.

Therefore, the group secured financing facilities to implement a number of expansion projects, aligning with the Kingdom’s vision for the media industry.

MBC Group reported SAR 2.8 billion in revenue in 2019-H1/2023.

The following are the details of the financing facilities received from the government: