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Fourth Milling Company (MC4) set its final IPO price at the top of its initial price range at SAR 5.30 per share, with the offering’s institutional tranche 119x oversubscribed after receiving SAR 102.2 bn in orders, according to a press release (pdf). The pricing gives the company a market cap of SAR 2.9 bn at listing and will see it raise some SAR 858.6 mn in IPO proceeds, the statement said. The story was picked up by Reuters.
REMEMBER- The company is taking a 30% stake (162 mn shares) to Tadawul’s main market in a secondary share sale. MC4 is currently 100% owned by Allana International, Abdullah AlOthaim Markets and United Feed Manufacturing, with each holding equal shares. Their post-IPO holding will settle at a combined 70% stake.
Use of proceeds + lockup: Proceeds from the sale will go directly to the selling shareholders, after some SAR 23 mn are used to cover IPO-related expenses, according to the prospectus. They will not be able to sell down their positions for a period of six months starting from the first day of trading.
What’s next? The subscription period for the retail portion of the offering kicks off this Wednesday, 2 October and runs for two days. Retail investors may receive up to 20% (32.4 mn) of the shares on offer if there is sufficient demand, with a maximum subscription limit of 250k shares and a minimum of 10 shares per investor. The final allocation of shares will take place on Sunday, 6 October and excess subscription fees are set to be refunded by Wednesday, 9 October.
ADVISORS- Riyad Capital is quarterbacking the transaction as lead manager, financial advisor, book-runner and underwriter, with Baker Mckenzie providing counsel to the issuer. PwC is financial due diligence advisor, Euromonitor International was tapped as market study consultant, and EY is auditor. Riyad Bank and Arab National Bank are receiving agents. Meanwhile, Khoshaim & Associates is counsel to Riyad Capital.
