Modern Mills debuts on TASI today

Logo of Modern Mills Co.

Modern Mills Co. starts trading on the Saudi Exchange (Tadawul), today, March 27, under the symbol 2284 and ISIN code SA1610O13M15, at SAR 48 a share.

Shares will trade with ±30% daily and ±10% static price fluctuation limits in the first three days. From the fourth trading day onwards, the daily price fluctuation limits will revert to +/-10%, while the static price fluctuation limits will no longer apply.

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This is the third listing on Saudi Arabia’s main market in 2024, after MBC Holding Group Ltd. listed on Jan. 8 and Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Feb. 27.

Last year, TASI listed seven companies, including, Al Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma), Morabaha Marina Financing Co. (MRNA), First Milling Co., Lumi Rental Co., ADES Holding Co., and SAL Saudi Logistics Services Co., besides the listing of Alinma Hospitality REIT Fund.

With the listing of Modern Mills, the number of companies listed on TASI reached 216, excluding real estate traded funds, which amount to 18.

Modern Mills floated 24.55 million shares, or 30% of its capital, on TASI. As much as 90% of the offered shares were allocated to institutional investors, while the remaining 10% was allotted to individuals at SAR 48 per share, according to Argaam's data.

The retail offering was 21.9x covered, and the number of individual subscribers reached 966,710, with proceeds reaching nearly SAR 2.6 billion. The institutional offering was 127x covered.

The company commenced its operations in 1972 as a group of wheat mills under the General Food Security Authority (GFSA). In 2016, a Ministerial Resolution was issued, declaring the incorporation of Modern Mills Company in Khamis Mushait under the name “Third Milling Company”.

The company's current operations include the manufacturing, packaging, and sale of flour products, derivatives, animal feed, and animal bran.

They also include wheat packing and milling, barley packing and milling, concentrated animal feed manufacturing, barley wholesale, bakery product wholesale, barley retail sale, and land transport of goods, according to the company's commercial register.

Modern Mills operates flour mills in the southern and western regions, where it focuses on Makkah and Madinah, as well as the northern region, with a combined daily processing capacity of 3,451 tons for wheat milling and 1,400 tons for animal feed.