MC4 issues prospectus to offer 162M shares on TASI

Logo of Fourth Milling Co. (MC4)

Fourth Milling Co. (MC4) published the prospectus for offering 162 million shares, or 30% of its share capital, on the Main Market (TASI), at a nominal value of SAR 1 per share.

In June, the Capital Market Authority (CMA) approved the company's application to float its shares on TASI.

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The retail offering will run from Oct. 2-3.

Qualified Subscribers

Participating parties: Those who are qualified to participate in the book-building process, including investment funds. Foreign companies and institutions, investors from GCC companies, and other foreign investors by virtue of swap agreements, to which 100% of offered shares were allocated. If retail investors fully subscribe to their allocated shares, the financial advisor will have the right to reduce the number of their allocated shares to 129.6 million shares, or 80% of total offered shares.

Individual investors: Saudi nationals, residents of Saudi Arabia, and GCC nationals. As much as 20%, or 32.4 million shares, were allocated to individual investors.

According to data available with Argaam, MC4 was established in 2017 as a company specialized in the production of flour, wheat derivatives, and fodder. Its operations are located in Dammam, Madinah and Al-Kharj to cover all regions of the Kingdom.

In 2021, the National Center for Privatization and the Saudi Grains Organization announced finalizing the sale of MC4 to an alliance that includes Abdullah Al Othaim Markets Co. (Al Othaim), Allana International Co., and United Feed Manufacturing Co., at a value of SAR 859 million.

Al Othaim owns a 33.33% stake in Gulf Flour Milling Industrial Co. that fully owns MC4. Allana International and United Feed Manufacturing each hold a 33.33% stake in the company.

The company's current activity is the production, packaging and sale of flour products and their derivatives, as well as animal feed and bran.