(MENAFN) The Saudi Capital Market Authority (CMA) granted approval on Wednesday for the Fourth Mills Company to list 162 million shares, representing 30 percent of its total shares, for public subscription on the stock exchange. The Authority did not specify a precise timeline for the offering process.

Specializing in the production of flour, fodder, bran, and wheat derivatives, the Fourth Mills Company operates factories in Riyadh, Medina, and the Eastern Province, boasting a combined production capacity of 3,150 tons of wheat grains and approximately 450 tons of fodder. Established in 2017, the company emerged as part of Saudi Arabia's broader privatization initiative under Vision 2030, which aims to diversify the economy away from oil dependence.

In 2021, the Fourth Mills Company was acquired for 859 million riyals (USD229 million) by a consortium comprising Al-Othaim Markets, Alana International, and the United Feed Industry Company. This acquisition marked a significant step in the Kingdom's privatization efforts and positioned the company for expansion and market integration.

The upcoming IPO of the Fourth Mills Company will contribute to Saudi Arabia's series of initial public offerings, following the successful listing of 30 percent of the Modern Mills Company (formerly known as the Third Mills Company) in March, which raised USD314.6 million. This move underscores Saudi Arabia's commitment to enhancing its capital markets and attracting investment opportunities, aligning with Vision 2030's strategic goals for economic transformation and sustainable growth.

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