Saudi Arabia’s Fourth Milling Company (MC4) has initiated investor orders for its IPO, aiming to raise up to $228.9 million. This move taps into the strong interest in listings within the GCC region.
MC4 is offering 162 million shares, representing 30% of its total issued share capital. The indicative share price ranges from SAR 5 to SAR 5.30, suggesting a market valuation of approximately SAR 2.8 billion ($763.2 million).
The final offering price will be decided after a book-building process. Shares will be available for institutional and retail investors from September 15 to September 19.
Riyad Capital is the sole financial adviser, global coordinator, and lead manager for the IPO. Riyad Bank and Arab National Bank will handle the individual investors’ tranche.
“Since privatisation in 2021, Fourth Milling Company has undergone significant transformation, focusing on operational enhancement, market position strengthening, and revenue growth,” stated CEO Khalid Al Maktary. The company achieved a 31.1% volume share in the consumer market and a CAGR of 29.7% in revenue from 2021 to 2023.
Founded in 2017, MC4 was part of Saudi Arabia’s Vision 2030 strategy to diversify the economy. It was sold in 2021 to a consortium for $229 million. By 2023, MC4’s revenue reached SAR 556 million, with profits increasing from 14.9% to 25.2%. The company generated SAR 163 million in free cash flow in 2023 and plans to distribute 70% of its annual net profits as dividends.
MC4 produces flour, feed, bran, and wheat derivatives, with factories in Riyadh, Medina, and the eastern region. Its daily milling capacity is 3,150 metric tonnes of wheat grains, and it produces 450 tonnes of animal feed daily.
First Milling Company and Modern Mills previously went public, raising $266 million and $320 million respectively. Arabian Mills also recently priced its IPO at the top of its range, raising SAR 1.02 billion ($271 million).