{"id":87369,"date":"2024-06-27T00:00:00","date_gmt":"2024-06-27T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/06\/27\/the-more-millers-the-merrier\/"},"modified":"2024-06-27T00:00:00","modified_gmt":"2024-06-27T00:00:00","slug":"the-more-millers-the-merrier","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/06\/27\/the-more-millers-the-merrier\/","title":{"rendered":"The more millers, the merrier"},"content":{"rendered":"

We now have two milling companies planning to IPO in the same window: <\/strong>The Fourth<\/a>Milling Company (MC4)<\/a> has been cleared by the Capital Market Authority (CMA) to offer a 30% stake (or abut 162 mn shares) on Tadawul, the market regulator said in a statement<\/a>. The CMA provided no further details other than its standard note that the company\u2019s prospectus would be published \u201cwithin sufficient time prior to the start of the subscription period.\u201d <\/p>\n

MC4 joins Arabian Mills Food Products in exploring a sale. <\/strong>Arabian Mills said earlier this week it plans to offer a 30% stake<\/a> on Tadawul.<\/p>\n

We first heard of this IPO last year: <\/strong>Sources had told Bloomberg<\/a> last year that MC4 was gearing up for an IPO in 2024, with the company later tapping Riyad Capital as financial advisor for the transaction back in January<\/a>.<\/p>\n

About the company: <\/strong>MC4 produces flour, feed, bran and wheat derivatives through its factories in Riyadh, Madinah and the Eastern Region, according to its website. It has a daily milling capacity of 3.1k tons of wheat grains and daily production of 450 tons of animal feed.<\/p>\n

BACKGROUND:<\/strong> MC4 is among several state-owned milling firms that were sold to the private sector in recent years. MC4 was acquired in 2021<\/a> by a consortium that includes Abdullah Al Othaim Markets, Allana International Company, and United Feed Manufacturing Company for SAR 859 mn (c. USD 229 mn). <\/p>\n

The drive to \u201cmonetize\u201d: <\/strong>Modern Mills Company (MMC), previously known as Second Milling Company, made its debut<\/a> on the main market in March when it sold a 30% stake<\/a> in an IPO that saw strong demand from retail investors, 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

LISTINGS SET TO PICK UP PACE-<\/p>\n

Other transactions in the pipeline:<\/strong><\/p>\n