The Kingdom’s hot IPO market has news for us again this morning, fresh off the announcement at the end of last week that broadcaster MBC is going public. Our IPO report today has an update on MBC, news of what could be a multi-bn offering on the main market of Tadawul, and another heavily oversubscribed IPO on the parallel market, where investor appetite for smaller, early-stage companies remains strong.

#1- We have what might be the timeline for MBC’s blockbuster IPO, courtesy a report in Argaam. MBC Group, the region’s largest broadcaster and owner of the Shahid streaming platform, said last week that it would go public, but did not specify a timeline for the offering. We still don’t have clarity on allocation or the start of trading, but the Argamm says the working timeline looks something like this:

  • 30 Nov-6 December: Bookbuilding targeting institutional investors
  • 12 December: Pricing is announced
  • 14-18 December: Window for individual investors to subscribe

REMEMBER- The Reg-S-compliant share sale is primarily targeting institutional buyers, with the intention to float (pdf) saying at least 90% of shares on offer will be allocated to institutions, with no more than 10% earmarked for individual investors.

BACKGROUND- As we reported last week, MBC (which is 60% owned by the state) is set to list 10% of its shares on Tadawul in what should be the Kingdom’s largest public share sale since the SAR 2.5 bn IPO of cargo firm SAL late last year.

ADVISORS- MBC has hired our friends at HSBC alongside JP Morgan and SNB Capital. GIB Capital is serving as financial advisor to substantial shareholders. Arab National Bank, Banque Saudi Fransi, Riyad Bank and Saudi National Bank have been named receiving banks, while Brunswick is running media.

#2- SMC could soon go public on the main market. The owners of the Second Milling Company (SMC) could soon take it to market, Arqaam reports, quoting Al Rajhi International Investment CEO Ahmed Al Dakheel. The company has three mills — one each in Riyadh, Jazan and Hail — and a total annual production capacity of 1.3 tons.

It’s not clear who might be tapped to quarterback the transaction.

Who owns what? Abdulaziz Al Ajlan Sons Company for Commercial and Real EstateInvestment is currently the majority shareholder with a 50.1% stake, while Al Rajhi has a 35% stake and Nadec, the first agri company to be listed on Tadawul and one of the oldest of its kind in the kingdom, owns the remaining 14.8%.

REMEMBER- SAGO exited SMC in 2021: The Saudi Grains Organization (SAGO) full divested from SMC and the Fourth Milling Company for a combined SAR 3 bn back in 2021.

#3- OVER ON THE NOMU- Armah Sports’ SAR 137 mn IPO is 4x oversubscribed: ArmahSports has wrapped up the book-building process for its Nomu IPO with demand covering 404% of the offered shares, according to a regulatory filing on Wednesday. Saudi Fransi Capital, the transaction’s financial advisor and underwriter, has priced the IPO top of the range at SAR 28.00 apiece. The fitness player intends to list 4.9 mn shares on parallel market Nomu, good for a 15% stake in the company.

What does Armah Sports do? It’s the owner and operator of the Optimo and B-Fit fitness chains.

ADVISORS- Saudi Fransi Capital is leading the transaction as financial advisor, lead manager, and bookrunner. Sate is legal council, PwC is financial due diligence advisor, while Baker Tilly is auditor, and Portas the market consultant, according to the company’s prospectus (pdf).

Other Nomu listings in the pipeline:

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