Arabian Mills’ $271 Million #Saudi IPO Sells Out in An Hour - Bloomberg

Arabian Mills’ $271 Million Saudi IPO Sells Out in An Hour - Bloomberg

Arabian Mills for Food Products Co.’s initial public offering in Saudi Arabia was fully covered within an hour of books opening, the latest sign investor appetite remains rife and will support a further burst of activity in the kingdom’s IPO market in the final months of the year. .

The flour milling company plans to raise as much as $271 million by selling a 30% stake, or about 15.4 million shares, on the local Saudi stock exchange. Institutional investors covered the order book throughout the price range of 62 riyals to 66 riyals ($16.50 to $17.60) per share, according to people familiar with the matter, who asked not to be identified discussing private information.

The offer period and book-building for institutional investors will run from Sept. 1 to Sept. 5, with final pricing expected on Sept. 11. The retail subscription period will run from Sept. 18 to Sept. 19.

Details on Arabian Mills’ IPO plans and orders come just a week after Saudi perfume maker Al Majed for Oud Co. announced its own pricing for an offering that was also sold out almost immediately. The activity suggests Saudi Arabia’s equity capital markets may stay brisk through 2024 after a busy first half that included a $12 billion secondary offering from oil behemoth Saudi Aramco.

Aramco’s deal was also sold out within hours, as was the $763 million IPO done by local hospital group Dr. Soliman Abdul Kader Fakeeh Hospital earlier this year, Bloomberg has reported.

Arabian Mills is the fourth Saudi flour milling company to announce plans to go public, after the government split the state-controlled industry into four firms and sold them to the private sector.

First Milling Co. and Modern Mills Co. already trade on Saudi’s stock exchange; Fourth Milling Co. was approved for an IPO in June.

Arabian Mills hired HSBC Saudi Arabia as its sole financial adviser, global coordinator, book-runner, underwriter and lead manager. Al Rajhi Bank, Saudi Awwal Bank and Banque Saudi Fransi are receiving agents, according to Sunday’s statement.