Saudi Arabia’s Fourth Milling Company has announced the successful conclusion of the institutional bookbuilding process, culminating in the establishment of the final offer price for its initial public offering (IPO) on the Main Market of the Saudi Exchange.
Following a highly effective bookbuilding period, the final offer price has been set at SAR5.30 per share, resulting in a market capitalization of SAR2.862 billion ($763.2 million) upon listing. The price range for the offering was established between SAR5 and SAR5.30.
The institutional bookbuilding process attracted significant interest, generating an order book of approximately SAR102.2 billion ($27.26 billion) and achieving 119 times oversubscription, reflecting robust investor demand.
The retail subscription period will occur from Wednesday, October 2, 2024, and will close at the end of Thursday, October 3, 2024.
Strong institutional interest
Khalid Al-Maktary, chief executive officer of Fourth Milling Company, remarked that the final offer price for their IPO, determined after a successful bookbuilding process, reflects the strong interest from institutional investors as well as their confidence in the company’s strategic vision and operational excellence within the Kingdom’s milling sector. He noted that this remarkable demand would pave the way for a successful IPO and signify another milestone in MC4’s growth journey. He further emphasized that the company’s commitment to quality, innovation, and sustainable growth positions them for continued success.
Read more: Saudi Arabia’s Fourth Milling Company to raise $228.9 million from IPO
Confirmation of offer details
- The final offer price is set at SAR5.30 per share, indicating a market capitalization of SAR2.862 billion ($763.2 million) at listing.
- The total offering size amounts to SAR858.6 million ($228.96 million).
- Also, the offering includes a secondary offering of 162,000,000 Offer Shares, representing 30 percent of the Company’s total issued share capital. All Offer Shares have been provisionally allocated to institutional investors who participated in the bookbuilding process. The financial advisor may, in collaboration with the Company, adjust the allocation to 129,600,000 Offer Shares, representing 80 percent of the total Offer Shares, to meet individual subscriber demand. The final allocation to Participating Parties will be adjusted based on subscription demand from individual investors.
- After the offering, the current shareholder, Gulf Milling Industrial Company, will retain 70 percent of the Company’s share capital.
- Additionally, post-listing, the Company is anticipated to have a free float of 30 percent of the Shares.
- Up to 32,400,000 shares, or 20 percent of the total Offer Shares, will be allocated to individual subscribers.
- Moreover, the offer shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the offering and the necessary listing formalities with both the CMA and the Saudi Exchange.
- Riyad Capital has been appointed as the financial advisor, Lead Manager, Bookrunner, and Underwriter.
- Furthermore, Riyad Bank and Arab National Bank have been designated as receiving agents.
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