MC4 plans IPO, to list 30% of shares on Saudi main bourse

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Saudi Arabia's Fourth Milling Company (MC4) has announced its intention to proceed with an initial public offering (IPO) and plans to list 162 million shares, equal to a 30% stake, on the Main Market of the Saudi Exchange.

Saudi regulator CMA said it had approved the firm's public listing application, without providing a timeline for the flotation.

The offering price will be announced following the end of the institutional bookbuilding period. The offering’s net proceeds will be distributed to the selling shareholders. The company will not receive any part of the proceeds from the offering.

Listing and trading

The offer shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the offering and listing formalities with both the CMA and the Saudi Exchange. The offer shares will be offered for subscription to Individual Subscribers and Participating Parties.

Following completion of the Offering, the current shareholder will own 70% of the company’s share capital. The current shareholder owning 100% of the shares in the company is Gulf Flour Milling Industrial Company. Immediately following listing, the company is expected to have a free float of 30% of the shares. With respect to the offering, the company has appointed Riyad Capital Company as the Financial Advisor, Lead Manager, Bookrunner, and Underwriter.

Riyad Bank, and Arab National Bank have been appointed as receiving agents for retail investors.

Leading force

Bader Hamed AlAujan, MC4 Chairman said: “The Fourth Milling Company is proud to be a leading force in the Saudi milling industry. With over 40 years of experience and a commitment to quality, we have played a crucial role in transforming the industry and meeting the needs of the Saudi market. As we continue to witness rapid economic growth and increased demand for high-quality flour and animal feed products, we are well-prepared for our next phase of growth through our innovative and sustainable approach.

“With the IPO, we embark on an exciting new chapter. Over the coming years we aim to further strengthen our market position, expand our product portfolio and continue to invest in infrastructure, people and processes. As a market-leading and well-respected business, backed by strong macro fundamentals and dynamic growth prospects, the entire Fourth Milling Company team is eager to embrace the opportunities that lie ahead.”

Celebration of achievements

Khalid Al Maktary, MC4 CEO, said: “This IPO is a celebration of our achievements to date and a significant milestone for everyone who has been part of our journey since establishment. Since the privatisation in 2021, Fourth Milling Company has been on a path of significant transformation. Our focus has been on enhancing operations, fortifying our market position, and driving revenue growth while adopting leading governance practices. I am proud to announce that we achieved a 31.1% share (volume share) in the consumer market, representing the highest among all flour brands. Moreover, our revenue saw a compound annual growth rate of 29.7% from 2021 to 2023.

“With our strong market position and excellent growth prospects, we are excited about the future and the continuing role we can play in the growth and development of the kingdom’s food security. This IPO is an opportunity for us to further grow our shareholder base as we continue our journey and welcome investors seeking a meaningful and rewarding investment proposition.”--TradeArabia News Service