Arabian Mills Sets IPO Price Range
In late August, Arabian Mills announced plans to float 30% of its capital or 15.39 million shares.
Arabian Mills for Food Products Company has set its initial public offering (IPO) price range on the Saudi stock exchange. The company aims to raise between SAR 954 million and SAR 1.01 billion ($255-$271 million) with an offer price between SAR 62 ($16.53) and SAR 66 ($17.59) per share. This gives an estimated market capitalization of between SAR 3.18 billion ($847.634 million) and SAR 3.38 billion ($900.944 million).[1]
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The institutional book-building period started on September 1st and will close on September 5th. The final share price will be set on September 11th.
In late August, Arabian Mills announced plans to float 30% of its capital or 15.39 million shares.
HSBC Saudi Arabia is the financial advisor, global coordinator, bookrunner, underwriter, and lead manager for the IPO. Alrajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi are acting as receiving agents for retail investors.
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.