Saudi Arabia’s Fourth Milling Company recently announced the price range for its initial public offering (IPO) and the commencement of the institutional book-building period for participating parties.
The company is expected to raise between SAR810 million ($216 million) and SAR858.6 million ($228.9 million) from the IPO, indicating a market capitalization at listing between SAR2.7 billion ($720 million) and SAR2.8 billion ($763.2 million).
Fourth Milling Company set the price range for the IPO between SAR5 and SAR5.30 per share, offering 30 percent of the company’s total issued share capital. The company also announced that institutional book building commenced on September 15 and will close at 4:00 PM KSA time on September 19.
On June 26, the Capital Market Authority (CMA) approved Fourth Milling Company’s application for registering its share capital and the offering of 162,000,000 ordinary shares. The company will announce the offering price following the end of the institutional book-building period.
Fourth Milling Company will list its shares on the Saudi Exchange’s Main Market following the completion of the IPO and listing formalities with both the CMA and the Saudi Exchange. The company also announced that it will allocate 20 percent of the offering, or 32,400,000 shares, to individual subscribers.
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Riyad Capital will be the financial advisor, lead manager, bookrunner, and underwriter of the IPO. Meanwhile, Riyad Bank and Arab National Bank will be receiving agents.
The IPO’s net proceeds will go to the selling shareholders and Fourth Milling Company will not receive any part of the proceeds from the offering.
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