Regional broadcaster MBC Group has obtained approval from Saudi Arabia’s market regulator to proceed with an initial public offering (IPO), taking advantage of the current surge in listings within the Gulf region.
In a filing to the Saudi exchange Tadawul, it was announced that the Capital Market Authority (CMA) has given its approval for MBC to conduct an IPO by selling 33.25 million shares, which represents 10 percent of the company’s total share capital.
“The CMA’s approval on the application shall be valid for six months from the CMA Board resolution date,” it said.
If the offering and listing of the company’s shares are not finalized within the specified timeframe, the granted approval will be “deemed cancelled”.
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In a statement, MBC said the offer price will be determined at the conclusion of the book-building period.
According to the statement, the funds raised from the IPO will be allocated towards several purposes, including the repayment of existing debts, bolstering liquidity reserves to support the company’s working capital needs, investing in content expenditure for the Shahid video streaming platform, and funding new initiatives.
Expansion plans and more
MBC Group’s chairman, Waleed Al Ibrahim, stated that the IPO will not only facilitate MBC’s growth in the market and expansion of its audience reach but also enable the company to venture into new entertainment sectors.
“Through this offering, we are inviting investors to be part of a robust enterprise, well-reputed brand, underpinned by strong macro fundamentals and dynamic growth prospects.”
Upon completion of the offering, the offered shares will be listed and traded on the main market of the Saudi Exchange. As a result, the current shareholders will retain ownership of 90 percent of the company’s total share capital, according to the statement.
In 2022, MBC recorded a revenue of SAR3.49 billion ($930 million). Over the period from 2020 to 2022, the company achieved a compound annual growth rate (CAGR) of 23 percent.
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