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Arabian Mills set its final IPO price at the top of its initial price range at SAR 66 per share, according to a press release (pdf). The pricing gives the company a market cap of SAR 3.4 bn at listing, and will raise some SAR 1 bn in IPO proceeds. The company is taking a 30% stake to market on Tadawul’s main market in a secondary share sale.
REMEMBER- The IPO drew in strong institutional demand: Arabian Mills’ institutional offering sold out within hours of opening last week and was 132x oversubscribed, with bookbuilding raking in a total of SAR 134.1 bn in orders from both local and international investors.
WHAT’S NEXT- Retail investors will have their turn from Wednesday, 18 September to Thursday, 19 September, during which they can subscribe to a minimum of 10 shares and a maximum of 250k each. The flour milling company is allocating 100% of the offering to institutional investors. This can be reduced to 90% if there is sufficient enough demand from retail investors, who would then be allocated 10% of the sale. Final allocations are scheduled for Thursday, 26 September with refunds from excess subscriptions due by the next week. Other IPO information and documents can be found on the company’s IPO website.
ADVISORS- Our friends at HSBC Saudi Arabia are acting as the sole financial advisor, global coordinator, bookrunner, underwriter, and lead manager on the transaction, while Baker McKenzie is counsel, PwC is financial due diligence advisor, EY is auditor, and Euromonitor International is market consultant. Meanwhile, Alrajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi are the receiving agents.
