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SNB Capital Completes Lead Advisor Role for MBC Group IPO
Riyadh, Saudi Arabia – December 2023: SNB Capital, the leading investment bank and asset manager in Saudi Arabia, announced today the successful completion of its financial advisory role in the initial public offering (IPO) of the MBC Group (MBC), the MENA region media broadcasting giant, which is listing on the Saudi Exchange Tadawul.
SNB Capital acted as financial advisor, lead manager, institutional bookrunner and underwriter for the IPO. The price range was set at between SAR 23 and SAR 25 with a total offering size of between SAR 765 million (USD204 million) and SAR 831 million (USD222 million), for a 10% stake in the company.
Zaid Ghoul, Managing Director and Head of Investment Banking at SNB Capital commented: “SNB Capital is pleased to have advised MBC Group on this iconic IPO which comes at a time when interest in the Saudi market has never been higher. The economic drive and the growth of the Kingdom is leading to strong valuations as national and international investors look to increase their exposure to the Saudi equity capital market.”
MBC Group is the leading multi-platform broadcaster in the region with a portfolio of TV channels, radio stations, and streaming platforms making it a visible and recognized brand in broadcasting and streaming media. The demographics of the region and MBC’s move into gaming and further entertainment options have underpinned interest in the IPO.
The institutional book-building ran from the 30th November to 6th December and the retail offering starts on the 14th December and goes through to the 18th December 2023.
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SNB Capital Announces Successful Closure of the Basic Foods Fund with a SAR 200 million Investment in Warda Al Mashreq Foods
SNB Capital has announced the successful closure of the private investment fund, SNB Capital Basic Foods Fund. The Shariah-compliant fund is designed to invest in Warda Al Mashreq Foods, one of the Kingdom’s leading food manufacturing companies, to support its readiness for an initial public offering (IPO) on the Saudi Stock.
The company produces a wide range of processed cheese and essential food products and has seen rapid growth in demand. It boasts an outstanding operational track record spanning over 30 years.
Warda Al Mashreq currently operates three factories in Riyadh, the capital of Saudi Arabia, and is in the process of establishing a fourth facility. This expansion positions the company competitively to enhance operational efficiency and increase production capacity, with a focus on export opportunities and regional growth in one of the most dynamic sectors.
Market estimates suggest that the company’s target food sector in the Middle East and Africa will grow from SAR 58.1 billion in 2023 to SAR 67.1 billion by 2028, driven by population growth and changing consumer behavior across the region.
The Basic Foods Fund reflects SNB Capital’s commitment to delivering carefully designed investment solutions that add value to client portfolios. The fund was structured to acquire a stake in a company with a clear expansion strategy and IPO readiness, leveraging SNB Capital’s expertise to transform it from a leading food manufacturer into a nationally listed entity.
SNB Capital and Aramco’s Wa’ed Ventures Sign a Strategic Partnership to enable Strategic Advisory and Investment Services
SNB Capital has signed a strategic partnership with Aramco’s venture capital fund Wa’ed Ventures; aiming to identify and collaborate on potential joint investment opportunities in the technology startup sector.
The partnership establishes a framework for strategic cooperation by combining SNB Capital’s market leading advisory expertise with Wa’ed Ventures’ investment capabilities, the partnership seeks to accelerate the growth of innovative startups, enable access to capital markets, and enhance investment flows.
Under the partnership, SNB Capital and Wa’ed Ventures will collaboratively identify potential investments that align with their shared strategic objectives, with SNB Capital acting as a financial advisor to Wa’ed Ventures and its subsidiaries across debt and equity capital markets, including mergers and acquisitions, debt structuring, and financing arrangements.
In addition, the partnership allows for the provision of specialized consultations and research, including legal, tax, and zakat advisory, to ensure the optimal structuring and execution of financial transactions.
Moreover, the partnership is set to accelerate the growth of innovative startups, unlock new streams of investment, and enable access to financing solutions to provide sustainable value to stakeholders as well as support the long-term growth for startups and entrepreneurs.
