This IPO will involve the sale of 15.39 million shares, providing investors with an opportunity to gain a stake in one of Saudi Arabia's leading milling companies. Formerly known as the Second Mills Company, Arabian Mills operates three major facilities in Riyadh, Jazan, and Hail, with a combined daily production capacity of approximately 4,920 tons of flour. These mills play a crucial role in ensuring the country's food security by supplying flour, a staple in the Saudi diet.
Arabian Mills' decision to go public comes on the heels of a successful IPO by Modern Mills Company earlier this year, which raised over $314 million. This latest offering underscores Saudi Arabia’s ongoing efforts to attract private investment and enhance the efficiency of its food production sector. The company, purchased in 2021 for 2.13 billion riyals ($568 million) by a consortium led by Abdul Aziz Al-Ajlan Sons Company, has seen significant growth and is now poised to enter the public market.
The Capital Market Authority (CMA) of Saudi Arabia has approved the IPO, with a prospectus detailing the offering set to be released ahead of the subscription period. The CMA's approval is valid for six months, within which the offering must be completed, or the approval will be nullified.
This listing is part of a broader wave of IPOs in the Kingdom, reflecting the government's commitment to market reforms and economic diversification. By selling stakes in key companies like Arabian Mills, Saudi Arabia aims to reduce its dependence on oil revenues and foster a more robust private sector.
Arabian Mills’ listing is expected to attract significant interest from investors, given the company's strategic importance in the Saudi food supply chain and its alignment with the government's long-term economic goals. This IPO marks another step in Saudi Arabia’s journey towards a more diversified and resilient economy, with private enterprise playing a pivotal role.