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Arabian Mills’ investor IPO tranche attracts $36bn

By Pramod Kumar
The subscription period for the retail tranche of Arabian Mills' IPO will start on September 18 and end on September 19 Arabian Mills
The subscription period for the retail tranche of Arabian Mills' IPO will start on September 18 and end on September 19

The institutional book-building process for the initial public offering (IPO) of Arabian Mills for Food Products Company (Arabian Mills) has attracted total orders of SAR134 billion ($35.7 billion).

The offering was oversubscribed 132 times by local and global investors.

The company set the final offer price at SAR66 per share, the top end of the price range, raising SAR1.02 billion for the selling shareholders: Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company (Ajlan & Bros), Sulaiman Abdulaziz Al-Rajhi International Company, and National Agricultural Development Company (Nadec).

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The flour producer’s market capitalisation will reach SAR3.4 billion on listing.

The subscription period for retail investors will start on September 18 and end on September 19.

Final allocations will be announced on September 26, with refunds made by October 3. Trading of the shares on the main market (Tasi) is expected to commence after meeting relevant statutory requirements.

Last month, the company announced plans to sell 15.4 million shares, or 30 percent of its share capital, on the Saudi stock exchange.

Arabian Mills, formerly known as Second Milling Company, was sold for SAR2.1 billion ($568 million) in 2021 by the Saudi Grains Organization as part of the country’s privatisation drive.

The company reported revenues and net profit of SAR862 million and SAR200 million, respectively, in 2023.  

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