Arabian Mills for Food Products Company (Arabian Mills) intends to sell 30% of the company’s capital, or 15.39 million shares, through an initial public offering on the Saudi Exchange's (Tadawul) main market.

The shares being sold are owned by Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company – Ajlan & Bros, Sulaiman Abdulaziz Al-Rajhi International Company, and the National Agricultural Development Company (NADEC).

The IPO bookbuilding process will run from September 1 to 15, with the final price announcement on September 11.

The retail IPO will run from September 18 to 19.

Following the completion of the offering, the current shareholders shall collectively own 70% of the company’s share capital. 

The final IPO price will be determined at the end of the book-building period.

The company has appointed HSBC Saudi Arabia as financial advisor, global coordinator, bookrunner, underwriter, and lead manager.

Alrajhi Bank, Saudi Awwal Bank and Banque Saudi Fransi have been appointed as receiving agents for retail investors.

The Riyadh-based company has consistently grown its market share in both volume and value across both its flour and feed products. It has a daily flour production capacity of  4,920 tonnes and a daily feed milling capacity of 600 tonnes.

Arabian Mills is the second largest in terms of market share in the Saudi flour market, with 28.4% and 25.3% in terms of volume and value, respectively, in 2023.

The company is a leader in the bran segment, with a market share of 32.6% last year.

(Editing by Seban Scaria Seban.scaria@lseg.com)