MBC Group’s valuation reached US$2.22bn
Media conglomerate MBC Group has completed an initial public offering on the Tadawul stock exchange in Saudi Arabia. The company raised US$222 million by selling 10% of its shares. This gave the company a 20% increase in value on the first day of trading. The company is now worth US$2.22 billion.
MBC Group is the largest broadcaster in the Middle East. Management plans to use the proceeds of the IPO to achieve three key strategic objectives:
– the company intends to repay some of its debt;
– the funds will also help strengthen the company’s financial stability and flexibility;
– the company will use the funds to increase investment in creating new content. This will primarily involve the Shahid streaming video service and a number of other areas.
It is worth noting that the stock market in the Middle East has grown strongly in recent years. Countries in the region are strengthening their capital sectors, contributing to an increase in the number of IPOs by local companies. Good momentum in the Saudi Arabian stock market is also stimulating it. Its main index, the Tadawul All Share, reached a bullish level at the beginning of 2024.
MBC Group Business Overview
MBC Saudi Corporation has been in existence since 1991 in London. The founders chose the British capital for a reason. They wanted to ensure that the company was independent of the governments of Saudi Arabia and other regional countries. Since 2002, the headquarters of the company has been in Dubai.
The company aimed to advocate for the Arab view of world affairs. Initially, funding came from various commercial sources. These funds, in turn, were the primary function of transnational corporations in the Middle East.
MBC was the first company in the region to create a 24-hour satellite television network. At the head of the conglomerate is the businessman Waleed Al Ibrahim. He owns 36% of the shares. The Saudi government, through Istedamah, controls 54% of the shares.
The structure of the company includes:
– 17 free satellite channels;
– two pay channels: HD and Plus Variety;
– three online services: MBC.net, Shahid and Hope.
The network’s first channel was MBC 1, launched in 1991. At the time, it was the only independent channel in the Middle East broadcasting for free. Today, the company offers a wide range of content to its viewers. The network broadcasts sports, music, entertainment and educational programmes. It includes channels for children, film and sports fans. The streaming service has the largest library among Arab countries. In addition to foreign content, it hosts shows and series produced in-house. The online portal MBC.net combines social networking features and offers interactive elements for users.
