Saudi Arabia’s Arabian Mills Co.’s will list 15.39 million shares, or 30% of its capital, in an initial public offering (IPO) on the Main Market (TASI).
The company has received today the approval from the country’s Capital Markets Authority (CMA) to go ahead with the listing. The prospectus will be published ahead of the subscription start date.
The approval is valid for six months from the CMA’s board resolution date.
Arabian Mills —formerly known as Second Milling Company (MC2) —was established in October 2016 as part of the privatization program of 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.
