MBC Group becomes Tadawul’s first new listing in 2024

MBC Group generated SR831 million ($222 million) in its initial public offering. Shutterstock.
Short Url
Updated 08 January 2024
Follow

MBC Group becomes Tadawul’s first new listing in 2024

RIYADH: Saudi Arabia’s media conglomerate MBC Group has become the first new listing in the Kingdom’s Tadawul All Share Index in 2024. 

The media giant started trading on Jan. 8, while the upper and lower limits of the daily and static fluctuation of the company’s stocks would be 30 percent and 10 percent, respectively, in the first three days. 

From the fourth day, the daily price fluctuation limits will revert to a swing within 10 percent, while the static price fluctuation limits will no longer apply.

MBC Group generated SR831 million ($222 million) in its initial public offering. 

Shares traded at SR32.5 as the Kingdom’s main market opened, against an IPO price of SR25 per share for a 10 percent stake. 

In a statement, SNB Capital, who acted as the lead adviser for the listing, said that investor appetite for the offering was high, with both the institutional and retail tranches oversubscribed by approximately 66 times and 17 times, respectively. 

“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,” said Zaid Ghoul, managing director and head of investment banking at SNB Capital. 

He added: “The economic drive and the growth of the Kingdom is leading to strong interest as national and international investors look to increase their exposure to the Saudi equity capital market.” 

Headquartered in Riyadh, MBC Group is the leading multi-platform broadcaster in the region with a portfolio of TV channels, radio stations, and streaming platforms. 

The demographics of the region and company’s move into gaming and further entertainment options have underpinned interest in the IPO, the press statement added. 

Al Istedamah Holding owns 60 percent of MBC Group, while group chairman Waleed Al-Ibrahim holds the remaining shares.

In December 2023, Sam Barnett, CEO of MBC Group, said that “the demand from investors reflects the high trust they have placed in MBC Group’s ability to shape the future of media and entertainment in Saudi Arabia, the Middle East and North Africa region, and beyond.” 


Apparel Group expands Saudi presence with 25 new brands 

Updated 7 sec ago
Follow

Apparel Group expands Saudi presence with 25 new brands 

RIYADH: Apparel Group is seeking to strengthen its presence in the Saudi market through digital commerce expansion, adding 25 new brands to its portfolio, and plans to grow its store network by 200 outlets this year to reach a total of 1,000, CEO Neeraj Teckchandani told Al-Eqtisadiah.

He noted that Saudi Arabia has been one of the group’s key markets since entering in 2007, currently operating more than 800 stores across the Kingdom. He added that the group’s current expansion plans include opening over 200 new stores this year, following 150 openings last year, with expectations that Saudi Arabia will become the group’s largest market in terms of footprint and revenue share in the coming period. 

Teckchandani added that the group continues to invest in e-commerce through its digital platform, SixFeet, launched in 2016, which contributed 10 percent of total group sales, noting that plans are underway to gradually increase this share in 2026 through technology investments and enhanced digital shopping experiences. 

The group is also preparing to launch a unified SuperApp this year, integrating its loyalty program, the SixFeet platform, and all digital assets into a single application to accelerate e-commerce growth, improve customer experience, and increase operational efficiency. 

New fashion and restaurant brands 

The CEO said the new brands added to the group’s portfolio cover fashion, footwear, restaurants, and entertainment, including Footasylum, FitFlop, and Clarins, as well as Bobbi Brown, Wagamama, Ivy Asia, and Punjab Grill. 

He noted that some brands have already opened in Saudi Arabia, with further expansion planned this year and next. 

85 brands under the group 

Apparel Group manages 85 global brands and over 2,500 stores across Saudi Arabia, the UAE, Bahrain, Qatar, and Oman. 

The company has also expanded strategically into India, South Africa, Singapore, and Indonesia, as well as Thailand, Malaysia, and Egypt. 

Its portfolio includes internationally renowned fashion, footwear, and lifestyle brands such as Tommy Hilfiger, Charles & Keith, Skechers, Aldo, Crocs, Calvin Klein and Aéropostale. The group also operates food and lifestyle brands including Tim Hortons, Jamie’s Italian, and Cold Stone Creamery, alongside beauty labels such as Inglot and Rituals. R&B, its in-house label, is currently the fastest-growing brand in the region. 

Securing locations in new centers 

Teckchandani pointed out that the Saudi market is witnessing rapid expansion in the shopping mall sector, with 30 new centers expected to open by 2030, affirming that the group has secured strategic locations in several of these projects and aims to expand its store network in parallel with real estate growth in the retail sector. 

He added that the group has also invested in operational infrastructure within Saudi Arabia, establishing a main distribution center in Riyadh to support supply chains, relocating to its new regional headquarters in Majdoul Tower, and expanding its logistics arm, “Connect Logistics,” as well as “Shopfit Interior,” a company specializing in store fit-outs. 

He added that the parent company is prioritizing investment in advanced technology and AI, along with launching the unified SuperApp in the second quarter of 2026, and has appointed a group-level chief digital officer to support this phase, with results expected in the short to medium term. 

Saudi expansion drives growth 

Teckchandani emphasized that Saudi Arabia represents the group’s main growth engine in the coming years, supported by strong consumer demand, rapid development of shopping centers, and increasing contribution from digital commerce. 

Apparel Group’s expansion comes amid a broader retail sector boom in Saudi Arabia, driven by rising consumer spending and accelerated development of malls under Vision 2030. 

The retail sector is one of the largest non-oil contributors to GDP, with increasing growth in digital sales channels as companies integrate e-commerce with traditional stores to enhance operational efficiency and expand market share. 

Major retailers are seeking to capitalize on population growth and rising purchasing power, alongside the expansion of hospitality and entertainment projects, boosting demand for global brands. Investments in logistics infrastructure and digital transformation have also become critical competitive factors, especially as e-commerce accounts for a growing share of total retail sales.