Logo of Arabian Mills for Food Products Co.
Arabian Mills for Food Products Co. issued its prospectus to sell 15.39 million shares to the public on the Saudi Exchange (Tadawul).
The share sale was approved by the Capital Market Authority (CMA) on June 24. Arabian Mills obtained Tadawul’s approval to list shares on the Main Market on March 10.
The offering will run from Sept. 18-19.
The offered shares, amounting to 15.4 million shares, represent 30% of the company's SAR 513.15 million capital. The share par value is SAR 10.
The company was established to produce and provide wheat and feed products throughout the Kingdom. The company's main business activities include the production and storage of flour, other wheat derivatives and feed.
The company owns two trademarks for its products, namely "Finah" and "Kamel". The company uses its "Finah" trademark for its food products of flour and other wheat derivatives, which include various types of flour, semolina, wheat germ and wheat bran prepared for human consumption. It uses its "Kamel" trademark for its feed products, which include poultry feed, various types of livestock feed and wheat bran prepared for animal consumption.
According to the prospectus, the company has the second largest share in the Kingdom's flour market, at 27.8%, or 943,700 tons of flour.
The daily production capacity of the company's mills is 4,920 tons, while the feed production reaches 600 tons.
Arabian Mills —formerly known as Second Milling Company (MC2) —was established in October 2016 as part of the privatization program of Saudi Grains Organization, data available to Argaam showed.
In April 2021, the National Center for Privatization & PPP (NCP) awarded the sale of Arabian Mills to the consortium of Ajlan & Bros Holding Group (ABHG), Al Rajhi International for Investment (RAII), National Agricultural Development Co. (NADEC), and Olam International. This consortium submitted a bid totaling SAR 2.13 billion.
In December 2021, NADEC completed the transfer of all assets of MC2 to Food Security Holding Co., merging the two entities into Second Milling Co. ABHG acquired the entire stake of Olam International, while NADEC increased its ownership share. The partners' post-acquisition ownership stakes are as follows: ABHG: 50.13%; RAII: 35%; and NADEC: 14.87%.
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Company Profile |
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Company |
Arabian Mills for Food Products Co. |
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Market |
TASI |
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Core Activities |
Production of flour products, its derivatives and animal feed |
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Capital |
SAR 513.15 mln |
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Number of Shares |
51.32 mln |
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Share Par Value |
SAR 10 |
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IPO Summary |
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Issue Percentage |
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30% |
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Number of Shares Offered |
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15.39 mln |
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Qualified Subscribers |
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Participating institutions and individuals |
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IPO Minimum Limit for Retail Investors |
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10 shares |
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IPO Minimum Limit for Institutional Investors |
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50,000 shares |
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Maximum Limit for Retail Investors |
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250,000 shares |
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IPO Maximum Limit for Institutional Investors |
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2.57 mln |
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Institutional Offer Period and Book Building |
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From Sept. 1 to 5, 2024 |
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Retail Offering |
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From Sept. 18 to 19, 2024 |
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Final Allocation |
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Sept. 26, 2024 |
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Refund (if any) |
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Oct. 3, 2024 |
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Major Shareholders |
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Shareholders |
Pre-IPO |
Post-IPO |
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Number of Shares (mln shares) |
Ownership (%) |
Number of Shares (mln shares) |
Ownership (%) |
|
|
Abdulaziz Al Ajlan Sons Co. for Commercial and Real Estate Investment |
25.72 |
50.13% |
18.01 |
35.09% |
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Sulaiman Abdulaziz Al Rajhi International Co. |
17.96 |
35.00% |
12.57 |
24.50% |
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National Agricultural Development Co. (NADEC) |
7.63 |
14.87% |
5.34 |
10.41% |
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Public |
-- |
-- |
15.39 |
30.00% |
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Total |
51.32 |
100% |
51.32 |
100% |
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Additional Information |
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Financial Advisor, Lead Manager, Underwriter and Bookrunner |
HSBC |
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Receiving Banks |
Al Rajhi Bank, SAB, Banque Saudi Fransi |
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