Arabian Mills for Food Products aims to raise USD 271 million from its initial public offering (IPO), which will see it publicly list 30% of its shares on the Saudi main stock exchange, TASI.
Details
Arabian Mills has set the price range for the offering between SAR 62 and 66 per share.
This means the offering proceeds will range between SAR 954 million (USD 255 million) and SAR 1.016 billion (USD 271 million). The company will not receive any portion of the proceeds.
The company’s market value is expected to hover between SAR 3.1 to 3.3 billion upon its listing debut.
So what
The institutional book-building process started on Sunday and will end on September 5. Afterward, the final offering price will be determined.
The offering price of stocks is set at the “upper limit” of the price range in most cases in the local market.
The IPO comes amid “strong appetite” from investors in the Saudi market, which has been booming for the past three years.
Some context
The momentum for IPOs returned to “Tadawul” last month, after a slowdown that typically accompanies summer vacation months.
Several offerings were announced, most notably by “Al Majed for Oud.”
Additionally, the Saudi Capital Market Authority approved the offerings of several companies, the latest being “United International Holding Company, ” a subsidiary of United Electronics Company (eXtra).
