{"id":87328,"date":"2024-06-26T00:00:00","date_gmt":"2024-06-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/06\/26\/another-miller-to-list-on-tadawul\/"},"modified":"2024-06-26T00:00:00","modified_gmt":"2024-06-26T00:00:00","slug":"another-miller-to-list-on-tadawul","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/06\/26\/another-miller-to-list-on-tadawul\/","title":{"rendered":"Another miller to list on Tadawul"},"content":{"rendered":"

Another milling company is making its way to Tadawul:<\/strong> Arabian Mills Food Products<\/a> is planning to offer a 30% stake on Tadawul\u2019s main market, according to a statement from the Capital Market Authority (CMA)<\/a>. Arabian Mills, previously known as Second Milling Company, has received CMA approval for the offering, which would see it sell some 15.4 mn shares. The CMA provided no further details other than to offer its standard note that the milling company\u2019s prospectus would be published \u201cwithin sufficient time prior to the start of the subscription period.\u201d<\/p>\n

With a note from Nadec:<\/strong> Tadawul-listed dairy giant Natural Agricultural Development Company (Nadec) \u2014 which owns a 14.9% stake in Arabian Mills with a book value of SAR 125.2 mn \u2014 noted the CMA\u2019s approval of the offering, according to a disclosure to Tadawul<\/a>. It said the financial impact \u201ccannot be accurately specified at this time\u201d as it remains contingent on valuation of the company and obtaining necessary approvals.<\/p>\n

About the company: <\/strong>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 website.<\/p>\n

All part of a wave of privatization: <\/strong>Arabian Mills is among several state-owned milling firms that were sold by the government to the private sector in recent years. It was acquired in 2021<\/a> by a consortium that includes Nadec, Olam International, Al Rajhi International for Investment Company and Abdulaziz Al Ajlan and Sons, Al Rajhi International for Investment Company and Olam International for SAR 2.1 bn. Since then, the privatized millers have sought share sales.<\/p>\n

It\u2019s not the first miller to IPO this year: <\/strong>Modern Mills Company (MMC), previously known as Second Milling Company, made its debut<\/a> on the main market in March after selling a 30% stake<\/a> in the IPO which saw strong demand from retail investors. priced the IPO top of the range at SAR 48.00 a share, valuing the company at a SAR 3.9 bn. Our friends at First Milling led the way last year<\/a> when they went public with a USD 266 mn IPO.<\/p>\n

With one more to come? <\/strong>The Fourth Milling Company (MC4) is also mulling and IPO this year. MC4 tapped Riyad Capital as financial advisor for the transaction back in January<\/a>. Sources told Bloomberg at the time that the sale could happen in 1H 2024. <\/p>\n

WHAT\u2019S NEXT?<\/p>\n

Heavy investor demand and good aftermarket performance <\/strong>has been the hallmark of recent IPOs including those of fintech player Rasan, aluminum products maker Talco, Fakeeh Care, and labor agency Smasco. Who else is in the pipeline?<\/strong><\/p>\n