Saudi Arabia’s Arabian Mills for Food Products Co. has announced it will offer shares of the company at a price of SAR 66 ($17.59) per share during its initial public offering (IPO), setting it at the top of its targeted range.
Saudi Arabia’s Arabian Mills Co.’s had previously obtained regulatory approval to list 15.39 million shares, or 30% of its capital on the Saudi Main Market (TASI).
The final offer price implies a market capitalization at listing of SAR 3.39 billion ($903.5 million).
The institutional offering was nearly 132x oversubscribed, with total orders of SAR 134.1 billion ($35.74 billion) by local and international investors. The retail offering will run from September 18-19, with the final allocation to be announced on September 26.
Arabian Mills —formerly known as Second Milling Company (MC2) —was established in October 2016 as part of the privatisation program of the Saudi Grains Organization. In April 2021, the company was acquired by the consortium of Ajlan & Bros Holding Group (ABHG), l Rajhi International for Investment (RAII), National Agricultural Development Co. (NADEC) and Olam International in a deal worth SAR 2.13 billion.
In December 2021, NADEC completed the transfer of all assets of MC2 to Food Security Holding Co., merging the two entities into Second Milling Co. ABHG acquired the entire stake of Olam International, while NADCE increased its ownership share.
Currently, Arabian Mills has a wheat milling capacity of around 4,920 tonnes per day through its three branches in Riyadh, Jazan and Hail. Its IPO is the latest in a series of GCC public offerings. It also follows the listing in March of Modern Mills – previously known as MC3 – which raised $314.6 million.
