The Capital Market Authority has approved Arabian Mills for Food Products’ bid to list 15.4 million shares, equal to a 30% stake, on the Saudi Stock Exchange.
What We Know
The IPO’s prospectus is expected to be published well ahead of the subscription start date.
The expected timeline for the offering has not been specified.
So What
The company, formerly known as “Second Milling Company” boasts a production capacity of approximately 4,920 tons of flour daily through its three mills in Riyadh, Jazan, and Hail.
Arabian Mills’s plan is part of a wider privatization program under the umbrella of the “Saudi Vision 2030” strategy, which aims to diversify the economy away from oil revenue dependency.
It is noteworthy that the National Agricultural Development Company “Nadec” holds approximately a 15% stake in “Arabian Mills.”
The latter’s book value is about SAR 125.2 million riyals, according to its Q1 2024 financial disclosure.
Some Context
Arabian Mills is the latest in a string of domestic IPOs.
Its listing will follow the offering of 30% of “Modern Mills” last March, a sale which saw the firm raise USD 314.6 million.
A press report indicated that “Fourth Milling” is similarly planning to make its public debut this year.
