The Clap
The shares of Modern Mills for Food Products (2284) surged by the maximum limit of 30% in its first trading session on the Saudi main market (Tadawul) on Wednesday, reaching 62.4 riyals compared to the listing price of 48 riyals.
Debut
Wednesday’s session witnessed the listing and trading of Modern Mills shares on the Main Market, within the food production sector.
It is worth noting that newly listed stocks are traded within a daily price fluctuation limit of +/- 30%, with fixed price fluctuation limits of +/- 10% applied.
This is during the first three days of listing, after which the daily price fluctuation limits are reset to +/- 10%, and the fixed price fluctuation limits are canceled.
So What
Modern Mills represents the third listing on the main market during the current year.
Following MBC Group on January 8 and Avalon Pharma on February 27.
This raises the number of companies listed on Tadawul to 216 companies, excluding the 18 listed real estate traded funds.
Some Context
Modern Mills, established in 2016 under the name Third Milling, raised 1.178 billion riyals by selling 30% of its shares in its initial public offering.
It was covered by institutions approximately 127 times, and 21.9 times by individuals.
Now What
The company’s CEO, Osama Ashi, stated in an interview with Al Arabiya Business that Modern Mills is a “key player” in the kingdom’s food and animal security system.
He added that its portfolio includes 3 products: flour, animal feed, and animal bran.
He also revealed the company’s future strategy as follows:
– Investing in infrastructure to meet the growing needs of the flour and animal feed sectors.
– Working to improve the efficiency of the feed mill, as part of a five-year plan.
– Expecting to gain a “good market share” in the flour and animal feed markets.
Finally, Ashi pointed out that the company’s market share in the flour sector reached 24% in 2022, compared to 20% in 2020, with expectations of better growth.
In addition to owning a “good market share” in the animal feed sector in the southern region, where the company hopes to reach a 50% market share in animal feed.
