Arabian Mills for Food Products is gearing up for its IPO on Tadawul, expecting to publicly list 30% of its shares on the bourse soon, the company’s Chief Financial Officer, Safwan Khasherif, said in an interview with Al Arabiya Business.
What
Khasherif, who noted that Tadawul’s appeal as a solid stock exchange drove the firm to pursue the plan, told the news outlet that his firm is looking to make its debut on the Saudi Stock Exchange late next month or by early October.
So what
Arabian Mills plans to offer approximately 15.4 million of its shares on the main market of Tadawul, which is valued at about SAR 513 million.
The company noted that the shares to be sold in the public offering are owned by “Abdulaziz Alajlan Sons for Trading & Real Estate Investments Co,” “Sulaiman Bin Abdulaziz Al-Rajhi Holding Co,” and “National Agricultural Development Company (Nadec).”
The company said it will announce the IPO price range on September 1 to kick off the offering’s book-building process.
The retail subscription period is slated for September 18 and will last two days.
The final offering price will be announced on September 11, following the end of the book-building time frame.
Some context
Rohit Chugh, the company’s CEO, noted that the company’s H1 revenues totaled SAR 465 million, a 16% YoY jump from the same period last year.
Net profits, meanwhile, saw a 41% YoY leap to reach SAR 102 million.
Chugh also mentioned in an interview with Argaam that the company is a market leader in the food production sector, given its healthy profit margins.
He said the IPO will bolster the firm’s growth strategy amid expectations of strong investor interest.
It is worth noting that “Arabian Mills” holds the “second-largest share” in the flour market in Saudi Arabia, according to its prospectus.
It has a 27.8% market share, equivalent to approximately 943.7 thousand tons of flour.
The company, formerly known as “Second Milling Company,” was established in October 2016 as part of the privatization program of the Saudi Grains Organization.
Now what
Ajlan Abdulaziz Alajlan, Chairman of Arabian Mills, noted that the company aims to enhance its production capabilities through the public offering.
It also plans to expand its product portfolio to meet the food and beverage sector’s growing demand and capitalize on the booming agricultural production sector in the Kingdom.
Alajlan also noted that “Arabian Mills“, one of the largest wheat and feed milling companies locally, aims to cover the daily nutritional needs of the Saudi community and play a significant role in “supporting Saudi food security.”
