Saudi Arabia's Fourth Milling Company (MC4) said on Thursday it is set to raise $229 million from an initial public offering (IPO) on its local stock exchange.
MC4, which is offering 162 million shares equal to a 30% stake, said in a statement the IPO was priced at the top of its indicative range at 5.3 riyals per share, giving the company a market capitalization of 763.2 million riyals at listing.
The tranche for institutional investors was 119 times oversubscribed, MC4 said, adding that after the IPO its owner Gulf Milling Industrial will retain a 70% stake.
MC4, which is involved in the production of flour, other wheat derivatives and animal feed products, did not provide a date for trading in its shares to start on the Saudi bourse.
The firm's flotation adds to a string of listings in Saudi Arabia and the wider Gulf in recent years as countries in the region seek to deepen capital markets and attract investment.
MC4 was one of firms which were part of a wider privatisation programme under Saudi Arabia's Vision 2030 strategy aimed at diversifying the oil-dominated economy.
Modern Mills - previously known as MC3, made its market debut in March after raising $314.6 million by selling a 30% stake, while Arabian Mills, previously known as MC2, earlier this month priced its IPO at the top of the range.
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