Fourth Milling Company to Launch IPO on Saudi Exchange
The raised funds will be used to expand the company’s portfolio, invest in infrastructure, and grow its FOOM brand.
Saudi Arabia’s Fourth Milling Company (MC4) has announced plans to list its shares on the Saudi Exchange. The initial public offering (IPO) will involve 162 million ordinary shares, representing 30% of the company’s total issued share capital.[1]
Read More: 5 Signs Your Startup Is Ready for an IPO
The final offering price will be determined after the institutional book-building period. The company aims to distribute 70% of its annual net profits as dividends.
This IPO follows the Capital Market Authority’s (CMA) approval on June 26th, 2024, for registering MC4’s share capital. The raised funds will be used to expand the company’s portfolio, invest in infrastructure, and grow its FOOM brand.
Riyad Capital has been appointed as the financial advisor, lead manager, book runner, and underwriter for the offering.
Recently, Saudi-based BNPL app Tabby announced that is planning an initial public offering (IPO) on the Saudi Stock Exchange (Tadawul), following its recent acquisition of the Saudi digital wallet Tweeq.
Also, Arabian Mills for Food Products Company 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.
In addition,
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.