KSA’s Arabian Mills IPO fully subscribed within 1hr

Saudi Arabia’s Arabian Mills for Food Products Co. saw its initial public offering (IPO) fully covered within an hour of opening, reflecting robust investor demand and suggesting continued activity in the kingdom’s IPO market for the rest of the year.

The flour milling company plans to raise up to $271 million by selling a 30 per cent stake, or about 15.4 million shares, on the local stock exchange. Institutional investors subscribed across the price range of 62 riyals to 66 riyals ($16.50 to $17.60) per share, according to sources familiar with the matter.

The offer period for institutional investors is from September 1 to September 5, with final pricing expected on September 11. Retail subscriptions will take place from September 18 to September 19.

This follows the swift sale of Saudi perfume maker Al Majed for Oud Co.’s IPO, suggesting that Saudi Arabia’s equity capital markets will remain active through 2024. This activity comes after a busy first half of the year, including a $12 billion secondary offering by Saudi Aramco.

Arabian Mills is the fourth Saudi flour milling company to announce an IPO following the privatisation of the sector. First Milling Co. and Modern Mills Co. are already listed, and Fourth Milling Co. received IPO approval in June.

Arabian Mills has appointed HSBC Saudi Arabia as its sole financial adviser, global coordinator, book-runner, underwriter, and lead manager, with Al Rajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi as receiving agents.

Attribution: Bloomberg

Subediting: M. S. Salama