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Modern Mills Company (MMC) will ring the bell on Tadawul’s main market tomorrow, according to a statement by Tadawul yesterday. The flour milling company, previously known as Milling Company 3, is wrapping up an IPO that saw it sell a 30% stake — 20 points of it to institutions and the rest to retail investors.
MMC priced the IPO top of the range at SAR 48.00 a share, valuing the company at a SAR 3.9 bn. The IPO saw strong demand from retail investors with a 22x oversubscription rate. Selling shareholders will own a combined 69% of Modern Mills after the transaction; they include Mada International Holding, Al Ghurair Foods Company, and Masafi Company.
What to expect on Wednesday: Shares will be allowed to trade within a ±30% band on each of the first three days before being capped at no more than 10% up or down after that before circuit breakers kick in. (All shares on Tadawul are subject to the 10% up-or-down rule.)
Growth plans: MMC is looking to invest in its infrastructure to take more share of the flour and flour-derivatives market. It is also looking at new products and what related categories it can push into. It is interested in stepping up flour exports and expanding its animal feed sales beyond the Gulf to global markets.
All part of a wave of privatization + IPO bonanza for the milling firms: MC3 is among one of several state-owned flour milling firms that were sold to the private sector by the government in recent years under its privatization scheme for the industry. It was sold to a consortium of investors for SAR 750 mn in 2020. Since then, the privatized millers have sought share sales, with First Milling going public in May with a USD 266 mn IPO.
ADVISORS- HSBC Saudi Arabia is quarterbacking the transaction as financial advisor, joint bookrunner, underwriter and lead manager, while Emirates NBD Capital KSA is joint bookrunner and underwriter. Al Rajhi Bank and SNB are receiving agents. Moelis & Company Saudi are advisors to selling shareholders.
Another milling company IPO is in the works: The Fourth Milling Company (MC4) is set to IPO in 1H 2024. MC4 tapped Riyad Capital as financial advisor for the transaction back in January.
RASAN TO GO PUBLIC-
Rasan set for listing on main market: Fintech company Rasan has received Capital Market Authority (CMA) approval to sell a 30% stake on Tadawul’s main market, according to a statement by the regulator yesterday. No further details were provided, but the statement said Rasan’s prospectus would be published “within sufficient time prior to the start of the subscription period”.
About the company: Established in 2016, Rasan is a fintech firm focused on ins. and banking technology across the Gulf. It aims to create ins. and banking solutions to streamline daily financial transactions by individuals and businesses. Its digital solutions include Tameeni, Awal Mazad and others. It has HQs in Saudi, the UAE, and Egypt, according to its website.
