Saudi Arabian Mills for Food Products Company has priced its IPO at SAR66 per share, raising SAR1.02 billion ($271 million). This reflects the strong demand for listings in the GCC region.
Major shareholders, including Ajlan & Bros, Sulaiman Abdulaziz Al-Rajhi International Company, and NADEC, sold 15.4 million shares, representing 30% of the company’s paid-up capital.
CEO Rohit Chugh stated, The extraordinary demand we received for the institutional offering reflects the strong conviction those investors have in Arabian Mills, our strategic vision, and our proven ability to convert opportunities in the flour and feed market into sustainable and profitable growth.
The IPO implies a market valuation of SAR3.4 billion. The retail subscription period is scheduled from September 18 to September 19.
HSBC Saudi Arabia is acting as the sole financial adviser, global coordinator, and lead manager, with Alrajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi serving as receiving agents for individual investors.
Arabian Mills reported revenues of SAR862 million in 2023, growing at a CAGR of 16% since 2021, with profits increasing at a CAGR of 23.2% to SAR200 million. The company generated SAR238 million in free cash flow, representing a 27.5% cash conversion rate.
Founded in 2017, Arabian Mills was part of Saudi Arabia’s Vision 2030 strategy to diversify the economy. It was sold in 2021 to a consortium for $229 million (SAR859 million).
First Milling Company and Modern Mills have previously gone public, raising $266 million and $320 million, respectively. Saudi Arabia’s Fourth Milling Company and Al Majed for Oud Al also have IPO plans, indicating a robust market for public offerings.