RIYADH: Saudi wheat flour producer Arabian Mills for Food Products Co. plans to raise up to SR1.01 billion ($271 million) through its initial public offering on the Tadawul main market.
The company announced it will offer 15.4 million shares, or 30 percent of its capital, at a price range of SR62 to SR66. The institutional book-building period began on Sept. 1 and will close on Sept. 5.
Arabian Mills’ listing comes as Saudi Arabia continues to dominate IPO activities in the region.
A report by the Kuwait Financial Center in July revealed that the Kingdom led the Gulf Cooperation Council IPO market, raising $2.1 billion in the first half, a 141 percent increase from the same period in 2023.
“The decision to go public is a decisive one toward accelerating our growth trajectory,” said Rohit Chugh, CEO of Arabian Mills. “Looking ahead, the growing market for wheat flour, feed, and bran in the Kingdom presents compelling opportunities, and we are well-positioned to capitalize on robust demand through continuous innovation and quality enhancements.”
He added: “By going public, we are also committing to higher standards of transparency and corporate governance, which we believe will ultimately benefit our shareholders and other stakeholders alike.”
The total offering size is expected to be between SR954 million and SR1.01 billion, implying a market capitalization ranging between SR3.18 billion and SR3.38 billion.
The final offering price will be determined on Sept. 11, with the retail subscription period running from Sept. 18 to 19.
The company added that the final allocation of offer shares will be on Sept.26, with a refund of excess monies scheduled on Oct. 3.
HSBC Saudi Arabia has been appointed as the financial adviser, global coordinator, bookrunner, underwriter, and lead manager for the listing.
Alrajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi will serve as receiving agents for retail investors.
Arabian Mills has a daily flour production capacity of 4,920 tonnes and a daily feed milling capacity of 600 tonnes, according to its website.
By the end of 2023, the company held a 28.4 percent market share in Saudi Arabia, a 1.2 percent increase from 2021.
“This IPO is a catalyst for Arabian Mills to achieve sustainable, long-term growth and to continue our purpose of driving milling excellence and delivering nutrition,” added Chugh.
