Arabian Mills for Food Products is taking a 30% stake — good for 15.4 mn shares — to Tadawul’s main market in a secondary share sale, it said in a statement to Tadawul (pdf). The milling company received Capital Market Authority approval in June.

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Open for institutional + retail investors: The company plans to offer 100% of the offering to institutional investors, according to the IPO prospectus (pdf). This can be reduced to 90% if there is sufficient enough demand from retail investors, who would then be allocated 10% of the sale. Other IPO information and documents can be found on the company’s IPO website.

Subscription limits: Each institutional investor can place orders for a minimum of 50k shares, and a maximum of 2.6 mn. While retail investors can subscribe for a minimum of 10 shares, and a maximum of 250k.

The timeline:

  • Bookbuilding for institutional investors: From Sunday, 1 September, to Thursday, 5 September. The deadline for subscription is Sunday, 15 September.
  • Subscription period for retail investors: From Wednesday, 18 September, to Thursday, 19 September;
  • Final offer allocation: Thursday, 26 September;
  • Refund of excess subscriptions: Thursday, 3 October.

Shareholding structure + lockup period: The three substantial shareholders are selling down their positions to a combined 70%, and are prohibited from conducting any transactions on their shares for a period of six months from the first day of trading.

The offering proceeds, after deducting estimated offering expenses of SAR 33 mn, will be distributed among the selling shareholders in proportion to the number of shares each sells. These expenses will be borne by the selling shareholders.

ADVISORS- Our friends at HSBC Saudi Arabia are acting as the sole financial advisor, global coordinator, bookrunner, underwriter, and lead manager on the transaction, while Baker McKenzie is legal counsel, PwC is financial due diligence advisor, EY is auditor, and Euromonitor International is market consultant. Meanwhile, Alrajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi are the receiving agents.

Latest earnings: The company reported a 21.5% y-o-y decline in net income to SAR 200.3 mn in 2023, and its revenues dropped 4.5% to SAR 862.1 mn.

About the company: Arabian Mills operates three plants split between Riyadh, Jazan, and Hail with a combined milling capacity of 4.9k tonnes per day, according to its IPO website. Arabian Mills has the largest wheat milling capacity in the Kingdom, with a 28.4% market share. The company also says it has more than 7k B2B and B2C customers.
** EDITOR'S NOTE: Corrected on 22 August, 2024 to correct a reference to Arabian Mills in the last sentence. An earlier version erroneously cited First Mills. 

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