MBC Group raises SR831 million in a successful 10% stake sale, signaling investor confidence and paving the way for future growth.
Saudi Arabia’s renowned media powerhouse, MBC Group, made an impressive debut on the Saudi Exchange ‘Tadawul’ as its shares surged by 30% on the first day of listing, providing newfound joy to enthusiastic investors. The initial public offering (IPO) proved to be a resounding success, with the media giant raising SR831 million ($222 million) by publicly floating a 10% stake in the business.
MBC Group’s IPO opened at SR32.5 ($8.67) per share, a substantial increase from its offer price of SR25 per share. This substantial jump underscores the confidence investors have in MBC’s potential for future growth and success in the dynamic media landscape.
The IPO garnered widespread attention from both regional and international investors, resulting in an impressive order book of SR54.5 billion. The subscription cover reached an astounding 66 times the total number of shares offered, reflecting the overwhelming demand for MBC Group’s shares.
Sam Barnett, Chief Executive of MBC Group, expressed his satisfaction with the outcome of the IPO, stating, “Through this IPO, we welcomed new shareholders to the company and raised the capital needed to take us through our next phase of growth, innovation, and impact.”
MBC Group, known for operating 13 free-to-air TV channels and its popular streaming platform Shahid, has outlined a strategic roadmap for its future growth. Barnett highlighted key areas of focus, stating, “We have a clear roadmap guiding us through what the next phase of growth looks like, including growing the number of subscribers and viewers on Shahid, increasing advertising sales across our platforms, and expanding operations into exciting and promising sub-sectors including sports, music, gaming, and events.”
The overwhelming response to MBC Group’s IPO can be attributed to its strong market presence, content diversity, and successful foray into the digital streaming space. As the media landscape continues to evolve, MBC Group’s strategic vision and innovative approach position it favorably for sustained success in the competitive industry.
Investors and industry observers will be closely monitoring MBC Group’s performance in the coming months as it executes its growth plans and capitalizes on the raised funds to solidify its position as a leader in the media and entertainment sector. The success of the IPO underscores not only the strength of MBC Group’s brand but also the attractiveness of the Saudi market for both domestic and international investors.
