Arabian Food Products Mills reveals IPO price range, book-building process
(MENAFN) Arabian Mills for Food Products, based in Saudi Arabia, disclosed on Sunday the price range for its initial public offering (IPO) and the commencement of the book-building process, according to a statement provided to Sky News Arabia. The company has set the IPO price range between 62 and 66 Saudi riyals per share. The total size of the offering is anticipated to be between SAR 954 million and SAR 1.016 billion (approximately USD255 million to USD271 million), which would value the company between SAR 3.182 billion and SAR 3.387 billion (around USD848 million to USD903 million) upon listing.
The book-building phase, which starts today, will continue until September 5. The final offering price will be determined once this period concludes. On June 24, 2024, the Saudi Capital Market Authority granted approval for Arabian Mills to register and offer 15,394,502 ordinary shares, equivalent to 30 percent of its capital. These shares will be sold by existing shareholders, including Abdul Aziz Al-Ajlan Sons for Commercial and Real Estate Investment Company (Ajlan & Brothers), Sulaiman Abdul Aziz Al-Rajhi International Company, and the National Agricultural Development Company (NADEC).
Upon completion of the IPO, the net proceeds will be distributed among the selling shareholders based on the number of shares they sold. Arabian Mills itself will not receive any of the offering proceeds. The shares are set to be listed and traded on the main market of the Saudi Stock Exchange after the offering concludes. HSBC Saudi Arabia has been appointed as the financial advisor and subscription manager, while Al Rajhi Bank, Saudi First Bank, and Banque Saudi Fransi will act as receiving entities.
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