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Modern Mills’ shares climbed 30% on their first day of trading on the Tadawul yesterday to close at SAR 62.40 apiece, up from their initial price of SAR 48.00. The shares hit the maximum of the ±30% band within which they are allowed to trade on the first three days. Starting from the fourth day of trading on the Tadawul, the band will be capped at no more than 10% up or down before circuit breakers kick in.
Background: The flour milling company sold a 30% stake in the IPO, with 20 percentage points allocated to institutional investors and the remaining 10 points to retail investors. The IPO saw strong demand from retail investors with a 22x oversubscription rate. Selling shareholders — including Mada International Holding, Al Ghurair Foods Company, and Masafi Company — will now own a combined 69% of Modern Mills.
ADVISORS- HSBC Saudi Arabia quarterbacked the transaction as financial advisor, joint bookrunner, underwriter and lead manager, while Emirates NBD Capital KSA was joint bookrunner and underwriter. Al Rajhi Bank and SNB acted as receiving agents. Moelis & Company Saudi advised selling shareholders.
