Arabian Mills Schedules Retail IPO for September 18-19
The company plans to offer 30% of its capital, equivalent to 15.39 million shares.
Arabian Mills for Food Products Company (Arabian Mills) will hold its retail initial public offering (IPO) on the Saudi Exchange's (Tadawul) main market from September 18 to 19. The company plans to offer 30% of its capital, equivalent to 15.39 million shares.[1]
The shares being sold are owned by Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company – Ajlan & Bros, Sulaiman Abdulaziz Al-Rajhi International Company, and the National Agricultural Development Company (NADEC).
The bookbuilding process for the IPO will take place from September 1 to 15, with the final price announcement set for September 11. After the IPO, the existing shareholders will retain 70% ownership of the company.
HSBC Saudi Arabia has been appointed as the financial advisor, global coordinator, bookrunner, underwriter, and lead manager for the offering. Retail investors can participate through Alrajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi, which have been named as receiving agents.
Arabian Mills, based in Riyadh, holds the second-largest market share in the Saudi flour market, with 28.4% by volume and 25.3% by value in 2023. The company has a daily flour production capacity of 4,920 tonnes and a daily feed milling capacity of 600 tonnes.
Recently, Saudi Arabian perfumer Al Majed for Oud Company announced plans to proceed with an initial public offering (IPO) of 30% of its issued share capital on the Tadawul main market.
Last month, Saudi Arabia raised $12.35 billion from a secondary offering of a 0.64% stake in Aramco, priced at SAR27.25 ($7.42) per share. This includes an additional 154 million shares available through a greenshoe option, managed by Merrill Lynch to stabilize prices.
Also, Saudi Arabian water and wastewater infrastructure company, Miahona, debuted on the Riyadh bourse on June 6th.
In addition, Saudi Arabia's low-cost carrier, flynas, has officially announced plans for an IPO. Bander Almohanna, CEO of Flynas, told Asharq Business in an interview that the IPO offering is slated for later this year.
In May, Bloomberg data revealed that Saudi IPOs have seen overwhelming investor interest, including the Saudi Manpower Solutions Company (Smasco) which garnered over $30 billion in orders. At the same time, Dr. Soliman Abdel Kader Fakeeh Hospital Company, known as Fakeeh Care Group’s (FCG), IPO attracted $91 billion in orders, one of the highest figures for Saudi IPOs raising over $500 million.
Saudi Arabian Rasan Information Technology Co. attracted significant investor interest for its IPO, with orders worth approximately $29 billion. The IPO was 129.1 times oversubscribed.