Saudi Arabia’s Modern Mills Gets $40 Billion in Orders for IPO - Bloomberg
Investors put in about $40 billion of orders for Saudi Arabia’s Modern Mills for Food Products Co.’s initial public offering, as demand for share sales in the Middle East shows no signs of abating.
The demand for the institutional tranche of the 1.2 billion-riyal ($320 million) IPO amounted to a coverage of almost 127 times, according to a statement. The price was set at 48 riyals per share, the top end of a marketed range and implying a market capitalization of 3.9 billion riyals.
The selling shareholders Mada International Holding Co., Al Ghurair Foods, and Masafi Co. are offering 24.5 million shares in the IPO, or a 30% stake in the company. Retail investors will be able to bid for the offering between March 5 and 6.
The Gulf region has been a booming market for IPOs over the past two years, with high oil prices and increased international investor interest driving the sentiment even as share sales slumped globally amid high interest rates.
Drugmaker Avalon Pharma is a recent example of the strong appetite for IPOs in the region. The firm drew institutional investor orders worth 68.3 billion riyals for its 492 million-riyal offering. Its shares rose 30% to 106.60 riyals on its trading debut on the Saudi stock exchange yesterday.
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