Shares in MBC Group soar 30% on Saudi exchange debut

Shares in regional broadcaster MBC Group soared 30 per cent on its debut on Saudi Arabia’s Tadawul stock exchange on Monday as strong demand for regional initial public offerings continues.

MBC Group listed at 25 riyals a share, and by the end of the trading day it was up to 32.50 riyals.

MBC Group capital raising

As part of its IPO, MBC planned to float 10 per cent of its share capital on the Saudi Exchange.

It operates 13 free-to-air TV channels and runs the streaming-platform Shahid, known as the Netflix of the Middle East.

There has been a flurry of Saudi IPOs in recent years as the government privatises state assets and encourages private sector companies to list in a bid to deepen capital markets and attract investment, part of a reform push aimed at cutting the Kingdom’s reliance on oil.

State-owned Al Istedamah Holding held 60 per cent of MBC and Saudi businessman Waleed bin Ibrahim Al Ibrahim held 40 per cent, according to company records.

MBC‘s Chief Executive Officer Sam Barnett previously said that neither stakeholder would sell their shares and the shareholdings would be diluted proportionally following the IPO.