AS&H Clifford Chance Advises on MBC’s IPO and Tadawul Listing

AS&H Clifford Chance has served as the issuer’s counsel to MBC Group (MBC), a prominent media and entertainment company in the Middle East and North Africa, during its SAR 831 million (US$222 million) initial public offering (IPO) and subsequent listing on the Saudi Stock Exchange (Tadawul). 

In this strategic move, MBC issued new shares constituting 10% of its expanded share capital post the capital increase. The IPO saw substantial participation, with 90% of the total offer volume secured from institutional investors, and the remainder from Saudi retail investors. The institutional book-building process attracted significant interest, resulting in an oversubscription of 66 times, generating an order book of SAR 54.5 billion and a total demand of US$14.5 billion. 

The successful IPO raised gross proceeds amounting to approximately SAR 831 million (approximately US$222 million), contributing to a market capitalization of SAR 8.3 billion (approximately US$2.2 billion). 

MBC, known for its operation of 13 free-to-air TV channels and the Shahid streaming platform in the Middle East, considers this transaction a significant milestone. It not only unlocks substantial value for MBC’s shareholders but also underscores the company’s strategic dedication to advancing its core media and entertainment ventures. 

The cross-border team was led by Riyadh-based ECM partner Mansoor AlHagbani (pictured), with support from Clifford Chance partners Omar Rashid (Riyadh and Dubai) and George Hacket (Frankfurt). 

The core transaction team consisted of lead senior associates Rakan Kawar (Riyadh) and Rezwan Azam (Dubai) in addition to counsel Axel Wittmann (Frankfurt), supported by associates Fares AlMasri, Omar Al Harbi, Khaled AlBakr, Leen Kayali, Shahinaz AlAssaf, Abdullah Al Shebaiky and Dhary Alshathry (all based in Riyadh) and associates Massimiliano Valli, Ismaila Ngum and Shannon Burke (all based in Dubai) and associates Gordana GolubicHuertas and Maks Mencin and transaction lawyer Valeria Umanet (all based in Frankfurt).