Arabian Mills to List 30% Stake in Upcoming IPO
The CMA confirmed it had approved the public listing application and announced that Arabian Mills would publish the IPO prospectus.
Saudi Arabia's Arabian Mills for Food Products plans to list 15.4 million shares, equivalent to a 30% stake, on the local exchange, according to a statement by the Saudi Capital Market Authority (CMA).[1]
The CMA confirmed it had approved the public listing application and announced that Arabian Mills would publish the IPO prospectus. However, the CMA did not provide a specific timeline for the listing.
Previously known as the Second Milling Company (MC2), Arabian Mills has a wheat milling capacity of around 4,920 tons per day through its branches in Riyadh, Jazan, and Hail. The company was part of a broader privatization initiative under Saudi Arabia's Vision 2030, aimed at reducing the economy's dependency on oil.
In 2021, Arabian Mills was sold for $568 million by the Saudi Grains Organization to a consortium that includes Abdulaziz Al-Ajlan and Bros Sons Company for Trading and Real Estate Investment, Al-Rajhi International Investment Company, Nadec, and Olam International Company.
This IPO follows a series of public listings in the region, including Modern Mills' (formerly MC3) March IPO, which raised $314.6 million by selling a 30% stake.
Earlier this month, KSA’s perfumer retailer Arabian Oud named banks ahead of its anticipated IPO.
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.
Notably, Saudi Aramco's record IPO in 2019 drew $105.85 billion in orders from fund managers.