HSBC Saudi Arabia, in its capacity as lead manager, HSBC Saudi Arabia, JP Morgan Saudi Arabia, and NCB Capital, in its capacity as financial advisors, institutional bookrunners and underwriters for the MBC Group IPO, announced the completion of the bookbuilding process. For the segment of categories that successfully participated in the company’s shares, the final price was set at 25 riyals per share.
The company explained in its statement today, Tuesday, on Tadawul, that the subscription coverage ratio amounted to about 66 times the total shares offered.
She added that with the successful completion of the process of building the order book, the individual subscription phase will begin on Thursday, December 14, 2023 and end on Monday, December 18, 2023 at 5:00 pm Saudi time, where 3.325 million ordinary shares will be allocated, representing a 10 percent share. A maximum of % of the total shares offered for public subscription to individual subscribers.
The company explained that GIB Capital acts as a financial advisor to major shareholders.
MBC Group had expected the total size of the initial public offering to range between 765 million riyals and 831 million riyals. Which means that the company's market value upon listing will range between 7.648 billion riyals or 8.31 billion riyals.
The company recently said that the shares will be offered for subscription by individual investors and institutional investors, including participating classes outside the United States, in accordance with Regulation S under the US Securities Act of 1933, as amended.
She added that when the offering process is completed, the current shareholders will collectively own 90% of the company’s shares. The current shareholder base includes Sustainability Holding Company, with an ownership percentage of 60% of the company’s capital, and Walid bin Ibrahim Al Ibrahim, with an ownership percentage of 40%.
The price range for the offering was set between 23 Saudi riyals and 25 Saudi riyals per share (the price range). The book-building period for institutional investors begins today, Thursday, November 30, 2023 AD, until 2:00 pm Saudi time on Wednesday, December 6, 2023 AD.
On November 21, 2023, the Authority had approved the company’s request to register its shares and offer 33.250 million ordinary shares through an increase in the company’s capital, where the offering shares represent 10% of the company’s capital (after issuing the offering shares and increasing the company’s capital). The final price for purchasing shares will be determined for all subscribers to the offering at the end of the book-building period.
