Riyadh – Mubasher: Modern Mills Company (MMC) has announced the successful completion of the book-building process for its initial public offering (IPO) on the Saudi Exchange (Tadawul) at a final price of SAR 48 per share.
The final valuation of the stock implies a market capitalization of SAR 3.92 billion ($1.04 billion) at the listing, according to a press release.
The institutional book-building tranche collected around SAR 150 billion ($40 billion) in subscriptions, with a coverage ratio of around 127x of the total offered shares.
MMC is floating 30% of its share capital, equivalent to 24.54 million shares, to be listed on Tadawul’s Main Market.
The Individual Investor tranche subscription is set to take place between 5 and 6 March, where 2.45 million shares, representing 10% of the total offer shares, will be allocated to Individual Investors.
Osama Ashi, CEO of MMC, said: “Subscriptions were covered approximately 127 times and we are pricing at the top of the set range as a direct function of the robust institutional demand for MMC shares. This demand was driven by a renowned set of local, regional and global institutional investors.”
“We will continue to drive growth through strengthening our market share across our three product categories, continued investment in people and technology, expanding our product portfolio, accessing new geographies, and profitably expanding into adjacent categories,” Ashi added.
It is worth noting that HSBC Saudi Arabia acts as the sole financial advisor, global coordinator, joint bookrunner, underwriter, and lead manager for the offering.
Meanwhile, Emirates NBD Capital KSA, the investment banking arm of Emirates NBD, has been appointed as the joint bookrunner and underwriter, while Moelis & Company Saudi Limited is the advisor to the selling shareholders.
Al Rajhi Bank and the Saudi National Bank (SNB) act as receiving agents for the Individual Investors tranche.
MMC announced the details of its IPO plan earlier in February, after receiving the approval of the Capital Market Authority (CMA).
