Saudi Arabia’s Arabian Mills for Food Products is planning to list 15.4 million shares, equal to a 30 percent stake, on its local bourse, according to a statement by the Saudi Capital Markets Authority (CMA).
The CMA has approved Arabian Mills’ public listing application, and the company will publish the IPO prospectus “within sufficient time prior to the start of the subscription period.” However, the CMA did not provide a timeline for the listing.
A prospectus is a document that is prepared by a company and filed with the Securities and Exchange Commission (SEC) ahead of its IPO.
Read more: First Mills successfully lists on Saudi’s Tadawul following IPO
Arabian Mills, previously known as the Second Milling Company (MC2), has a wheat milling capacity of around 4,920 tons per day through its three branches in Riyadh, Jazan, and Hail.
The company was part of a wider privatization program under Saudi Arabia’s Vision 2030, which aims to reduce the country’s dependence on oil. In 2021, Arabian Mills was sold for 2.13 billion riyals ($568 million) by the Saudi Grains Organization to a consortium comprising Abdulaziz Al-Ajlan and Bros Sons Company for Trading and Real Estate Investment, Al-Rajhi International Investment Company, Nadec, and Olam International Company.
The listing of Arabian Mills will add to a string of IPOs in the Gulf country. In March, Modern Mills – previously known as MC3 – raised $314.6 million by selling a 30 percent stake in its public listing.
Additionally, according to a report, Saudi Arabian milling firm MC4 is also looking to go public this year.
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