Saudi Arabia’s Arabian Mills for Food Products has disclosed the final offer price for its initial public offering (IPO) on the kingdom’s main market.

The milling company, formerly known as Second Milling Company (MC2), has set the price at 66 Saudi Arabian riyals ($17.59) per share, implying a market capitalisation of SAR 3.38 billion ($903 million).

The total size of the offering is SAR 1.01 billion, comprising 15.4 million shares and represents 30% of the company’s issued share capital.

The book-building process garnered total orders of SAR 134.1 billion from local and international investors, with the institutional offering approximately 132 times oversubscribed.

The subscription period for individual Investors starts on 18 September 2024 and ends on 19 September 2024.

Final allocations will be announced on 26 September 2024. Trading is expected to commence following all relevant statutory requirements.

HSBC Saudi Arabia has been appointed as the financial advisor, global coordinator, bookrunner, underwriter, and lead manager. Al Rajhi Bank, Saudi Awwal Bank (SAB), and Banque Saudi Fransi have been appointed as receiving agents for retail investors.

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com