MBC prices its IPO at the top of the range, valuing the broadcaster at SAR 8.1 bn

Regional broadcaster MBC priced its IPO at the top of the range on which its bankers had guided, saying it will sell shares at SAR 25 a piece. That’s good for an SAR 831 mn IPO and values the company as a whole at SAR 8.1 bn, MBC said in a statement (pdf) yesterday. The subscription period for institutional investors wrapped up on 6 December.

Strong demand: The offering to institutional investors, which was fully covered in the first hour of the book-building period, ended up being 66x oversubscribed, with the bankers receiving SAR 54.5 bn in orders for the SAR 831 mn IPO.

What’s next?Retail investors will be able to place orders from tomorrow until 18 December. The retail offering is capped at 10% the shares on offer.

The transaction in brief: Some 33.25 mn ordinary shares are up for grabs, good for a 10% stake. MBC is owned by the state’s Istedamah (with a 60% stake), while founder and chairman Waleed Al Ibrahim holds the balance. Istedamah will be selling shares equivalent to a 6% stake in the company and will remain the majority shareholder post-execution with 54% of all shares. Al Ibrahim is selling the equivalent of 4%.

Trading in early 2024? The company is expected to ring the bell for its first trading day in Tadawul in early 2024, according to a document seen by Bloomberg.

What they said: MBC CEO Sam Barnett said strong appetite for the offering underscores investor confidence in MBC’s “strong brand, expansive reach, diverse and high-quality content portfolio, as well as the significant potential for growth which is underpinned by Shahid,” its streaming platform.

This is just the beginning: Current shareholders are set to offer another 5% of the company in the next three years — and make at least 30% of its shares available to the public within 10 years, according to the prospectus (pdf).

Check out our previous coverage here for a rundown on use of proceeds and KPIs for MBC.

ADVISORS- HSBC are quarterbacking the transaction as lead manager, while JP Morgan and SNB Capital are on board along with HSBC as joint financial advisors as well as joint bookrunners and underwriters, according to the prospectus. 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 as receiving banks, while AS&H and Clifford Chance are legal counsel. EY is acting as auditor, while PwC is financial due diligence advisor and market consultant. Brunswick is running media.

In regional IPO news: Abu Dhabi’s PureHealth prices shares in c. USD 1 bn ADX listing:The ADQ-owned company has priced its IPO at AED 3.26, putting it on course to raise AED 3.62 bn (USD 986 mn) from its share sale on the ADX, it said yesterday. The company wrapped up book building on Monday attracting orders worth AED 265 bn (USD 72 bn), with the institutional offering closing 54x oversubscribed and the retail component 483x the shares on offer.

FYI- PureHealth is the UAE’s second-largest IPO this year after Adnoc Gas’ USD 50 bn sale in March.

ADVISORS-First Abu Dhabi Bank is lead manager and lead receiving bank. International Securities is lead placement agent. WIO Bank and Al Maryah Community Bank are also receiving banks. Hadef & Partners are IPO legal counsel, Ibrahim & Partners is legal advisor to the lead manager and Ernst & Young is doing audit duties.