The $271 million Saudi IPO of Arabian Mills sells for Food Products 

The $271 million Saudi initial public offering (IPO) of Arabian Mills sells for Food Products out in under an hour.

Arabian Mills for Food Products Company, one of the market-leading flour milling companies in Saudi Arabia, stated today that the price range for its Initial Public Offering (IPO) was completely covered within an hour of books opening.

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The flour milling firm intends to sell 15.4 million shares, or 30% of its ownership, on the local Saudi stock exchange in order to generate as much as $271 million. The order book was covered by institutional investors between 62 and 66 riyals ($16.50 and $17.60) a share.

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The institutional book-building period will run from today, September 1, until September 5, at 5:00 PM KSA time. September 18–19 is when the retail subscription period will take place. The company stated that the ultimate price of the offer shares will be decided upon at the conclusion of the book-building procedure.

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Major shareholders include Sulaiman Abdulaziz Al-Rajhi International Company, Ajlan & Bros, Abdulaziz Al Ajlan Sons for Commercial and Real Estate Investments, and the National Agricultural Development Company (NADEC).

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The activity indicates that following a busy first half that featured a $12 billion secondary offering from oil giant Saudi Aramco, Saudi Arabia's equity capital markets may remain active through 2024.

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The firm has designated Alrajhi Bank, Saudi Awwal Bank (SAB), and Banque Saudi Fransi (BSF) as Receiving Agents, and HSBC Saudi Arabia as the Sole Financial Advisor, Global Coordinator, Bookrunner, Underwriter, and Lead Manager.

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The selling shareholders will receive a portion of the offering's net profits based on how many offer shares they each need to sell after it is concluded. The proceeds of the transaction will not be distributed in any way to the company. After the IPO is over, the offer shares will be published and traded on the Saudi Exchange's Main Market.

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