Arabian Mills for Food Products Company, one of the market-leading flour milling companies in Saudi Arabia, announced today the price range for its Initial Public Offering (IPO) as well as the commencement of the institutional book building period for Participating Parties. 

 

The price range for the offering has been set between SAR62 and SAR66 per share. The total Offering size is expected to be between SAR954 million and SAR1,016 million ($255 million and $271 million), implying a market capitalisation ranging between SAR3.182 billion and SAR3.387 billion ($848 million and $903 million).

 

The institutional book-building period commences today (September 1), and will close at 5:00 PM KSA time, on September 5. The final price of the offer shares will be determined at the end of the book-building process, the company said.

 

On 24 June, the Capital Market Authority (CMA) announced its approval of the company’s application for registering its share capital and the offering of 15,394,502 ordinary shares, representing 30% of the company’s issued share capital, by way of a sale of existing shares by Abdulaziz Al Ajlan Sons for Commercial and Real Estate Investments, Ajlan & Bros, Sulaiman Abdulaziz Al-Rajhi International Company, and the National Agricultural Development Company (NADEC), collectively, the selling shareholders. 

 

Following completion of the offering, the net proceeds of the offering will be distributed to the selling shareholders in proportion to the number of offer shares to be sold by each of them. The company shall not receive any part of the offering proceeds. The offer shares will be listed and traded on the Main Market of the Saudi Exchange following the completion of the IPO.

 

The company has appointed HSBC Saudi Arabia as the Sole Financial Advisor, Global Coordinator, Bookrunner, Underwriter, and Lead Manager and Alrajhi Bank, Saudi Awwal Bank (SAB), and Banque Saudi Fransi (BSF) have been appointed as Receiving Agents. - TradeArabia News Service