Saudi media major MBC Group is expected to rake up about $2.2 billion from its initial public offering (IPO), with the company announcing a final offer price of SAR 25 per share.
The final offer price was set following a highly successful book-building process, raising gross proceeds of approximately $222 million (SAR 831 million).
The initial offer price range for the issue was set at SAR 23 to SAR 25.
The book-building process drew considerable support from Saudi Arabia, regional and international investors, resulting in an order book of a whopping $14.5 billion (SAR 54.5 billion).
The overwhelming investor demand led to an over subscription of 66 times.
Sam Barnett, Chief Executive Officer of MBC Group, said the high level of demand from investors reflected the high trust they have placed in the 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,” he said.
The MBC IPO comprises a primary offering of 33.25 million new ordinary shares, representing 10 percent of the company’s share capital.
Hundred percent of the offer Shares have been provisionally allocated to those who participated in the book-building process.
In the event of retail investor subscriptions, the Joint Financial Advisors, in coordination with the company, will have the right to reduce the number of offer shares allocated to participating parties to 29.25 million shares, representing ninety percent of the issue.
Saudi Arabian nationals, foreign residents in Saudi Arabia and GCC nationals will be able to subscribe for shares in the retail offering between December 14 and 18 at the final offer price of SAR 25 per share.
They can apply through the appointed receiving agents which are Arab National Bank, Banque Saudi Fransi, Riyad Bank, and Saudi National Bank
The final number of offer shares allocated to the participating parties will be clawed back accordingly based on subscriptions from individual investors.
Immediately following listing, the company is expected to have a free float of 10 percent of its share capital.
The MBC 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.
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