Riyadh – Mubasher: Arabian Mills for Food Products Company announced the commencement of the institutional book-building period on 1 September 2024 as well as the price range for its initial public offering (IPO) at SAR 62-66 per share.
The company expects the total IPO size to range from SAR 954 million to SAR 1.01 billion ($255 million and $271 million), according to a press release.
This would imply a market capitalisation ranging between SAR 3.18 billion and SAR 3.38 billion ($848 million and $903 million).
The institutional book-building period will close on 5 September, while the final IPO price will be determined at the end of the book-building process.
Arabian Mills IPO comprises an offer of 15.39 million ordinary shares that account for 30% of the company’s issued share capital through the sale of existing ordinary shares.
According to the latest offering timeline data, the determination of the final IPO price is expected to be on 11 September. The retail subscription period will follow during 18-19 September, while the final allocation of the IPO shares will take place on 26 September. Meanwhile, the refund of excess monies will be on 3 October 2024.
In August, Arabian Mills announced its plans to proceed with the IPO, in which the listed National Agricultural Development Company (NADEC) is taking part.
On 24 June this year, the Capital Market Authority (CMA) announced its approval for registering the company’s share capital and IPO on the Saudi Exchange (Tadawul).
Arabian Mills clarified that “the net proceeds of the offering will be distributed to the selling shareholders in proportion to the number of offer shares to be sold by each of them. The company shall not receive any part of the offering proceeds.”
Additionally, the IPO shares will be listed and traded on the Main Market of Tadawul following the completion of the offering.
HSBC Saudi Arabia has been appointed as the Sole Financial Advisor, Global Coordinator, Bookrunner, Underwriter, and Lead Manager for the Arabian Mills IPO.
Receiving Agents, meanwhile, are Al Rajhi Bank, Saudi Awwal Bank (SAB), and Banque Saudi Fransi (BSF).
