Sign in
Another milling company is making its way to Tadawul: Arabian Mills Food Products is planning to offer a 30% stake on Tadawul’s main market, according to a statement from the Capital Market Authority (CMA). 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’s prospectus would be published “within sufficient time prior to the start of the subscription period.”
With a note from Nadec: Tadawul-listed dairy giant Natural Agricultural Development Company (Nadec) — which owns a 14.9% stake in Arabian Mills with a book value of SAR 125.2 mn — noted the CMA’s approval of the offering, according to a disclosure to Tadawul. It said the financial impact “cannot be accurately specified at this time” as it remains contingent on valuation of the company and obtaining necessary approvals.
About the company: 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.
All part of a wave of privatization: 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 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.
It’s not the first miller to IPO this year: Modern Mills Company (MMC), previously known as Second Milling Company, made its debut on the main market in March after selling a 30% stake 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 when they went public with a USD 266 mn IPO.
With one more to come? 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. Sources told Bloomberg at the time that the sale could happen in 1H 2024.
WHAT’S NEXT?
Heavy investor demand and good aftermarket performance 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?
- Hotels and resorts operator Boudl has filed to go public;
- Electronics retailer Extra plans to IPO the unit that owns and operates Tasheel, its consumer finance arm, with many in the market expecting the transaction will now come in fall;
- Fourth Milling Company is in the pipeline;
- Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
- Hypermarket operator Lulu is said to be eyeing a dual listing on Tadawul and ADX;
- Perfume maker Arabian Oud is said to have appointed bankers ahead of a share sale;
- PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital ;
- Nupco — a unit of the PIF — has reportedly tapped Rothschild & Co as financial advisor for its potential Tadawul IPO;
- Budget airline Flynas is reportedly looking to go public this year.
- Aster DM Healthcare looks set to spin off its GCC assets and seek a dual listing on Tadawul and in the UAE.
