Arabian Mills for Food Products Company, one of the market-leading flour milling companies in Saudi Arabia, recently announced the final offer price for its initial public offering (IPO) and the successful completion of the institutional book-building period for participating parties.
The company set the final offer price at SAR66 per share, indicating a market capitalization of SAR3,387 million ($903 million) and offering proceeds of SAR1,016 million ($271 million) for the selling shareholders.
The institutional book-building process garnered total orders of SAR134.1billion ($35.74 billion) from local and international investors. Moreover, it was approximately 132 times oversubscribed, signaling strong levels of demand from institutional investors.
“The extraordinary demand we received for the institutional offering reflects the strong conviction those investors have in Arabian Mills, our strategic vision. It also underscores the confidence in our operational capabilities, diversity, and quality of our products, our commitment to R&D and innovation, and their belief in our team,” stated Rohit Chugh, CEO of Arabian Mills.
Read: Saudi’s Arabian Mills to offer 15.39 million shares in IPO starting September 1
Retail investors
The Arabian Mills IPO will list and trade on the main market of the Saudi stock exchange following the completion of the IPO and listing formalities with the Capital Market Authority (CMA) and the exchange. The company has not yet announced the date of listing.
The subscription period for retail investors who qualify as individual investors starts on September 18 and ends on September 19. The company will announce final allocations on September 26 with any refunds of excess subscriptions happening by October 3.
In addition, Arabian Mills has appointed HSBC Saudi Arabia as financial advisor, global coordinator, bookrunner, underwriter, and lead manager for the IPO. Alrajhi Bank, Saudi Awwal Bank (SAB), and Banque Saudi Fransi will act as receiving agents for retail investors.
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