Fourth Milling Company, a prominent flour production entity in Saudi Arabia, has revealed the price range for its upcoming initial public offering (IPO) and has officially begun the institutional book-building phase for interested parties.
The price range for the IPO has been established between SAR 5 and SAR 5.30 per share. The institutional book-building process kicks off today, 15 September 2024, and will conclude at 4:00 PM KSA time on 19 September 2024.
On 26 June 2024, the Capital Market Authority (CMA) approved the Company’s application to register its share capital and to offer 162,000,000 ordinary shares, which accounts for 30% of the total issued share capital. The definitive offering price will be disclosed after the completion of the institutional book-building period.
The net proceeds from the offering will be directed to the selling shareholders, with the Company itself not receiving any funds from the IPO. The final purchase price for all participants will be determined once the book-building period is complete.
OFFERING DETAILS The Offer Shares will be listed and traded on the Saudi Exchange’s Main Market once all listing formalities with both the CMA and the Saudi Exchange are finalized.
- The offering price is set within a range of SAR 5 to SAR 5.30 per share.
- The IPO consists of a secondary offering of 162,000,000 shares, representing 30% of the Company’s total issued share capital.
- The expected size of the offering is between SAR 810 million (USD 216 million) and SAR 858.6 million (USD 228.9 million), indicating a projected market capitalization at listing of between SAR 2.7 billion (USD 720 million) and SAR 2.8 billion (USD 763.2 million).
- The Offer Shares will be available for subscription to both Individual Subscribers and Participating Parties.
Upon the offering’s conclusion, Gulf Milling Industrial Company, the current shareholder, will retain 70% of the Company’s share capital.
- Up to 162,000,000 shares, representing 100% of the Offer Shares, will be allocated to Participating Parties.
- The Financial Advisor may reduce the number of shares designated for Participating Parties to 129,600,000 shares (80% of the total Offer Shares) should there be a strong demand from Individual Subscribers.
- Individual Subscribers will be allocated a maximum of 32,400,000 shares, accounting for 20% of the total Offer Shares.
- Following the listing, a free float of 30% of the shares is anticipated.
- Riyad Capital has been appointed as the Financial Advisor, Lead Manager, Bookrunner, and Underwriter.
- Riyad Bank and Arab National Bank will serve as receiving agents for the IPO.
The offering is tailored for two groups of investors (“Investors”):
- Tranche (A): Participating Parties: This group includes investors eligible to take part in the book-building process in line with the CMA’s Book-Building Instructions. The total number of Offer Shares allocated to Participating Parties will initially be 162,000,000. If demand from Individual Subscribers is sufficient, the Lead Manager may reduce this to a minimum of 129,600,000 shares, or 80% of the total Offer Shares.
- Tranche (B): Individual Subscribers: This group includes Saudi nationals, including Saudi female divorcees or widows with minor children from marriages to non-Saudi individuals, as well as non-Saudis residing in Saudi Arabia and nationals from Gulf Cooperation Council (GCC) countries, provided they hold a bank account with a Receiving Agent. A maximum of 32,400,000 shares will be available for Individual Subscribers. If these subscribers do not fully utilize their allocated shares, the Lead Manager may proportionally reduce the allocation based on actual subscriptions.
OFFERING TIMETABLE
- Offering Period for Participating Parties and Book-Building Process: From Sunday, 15 September 2024, until the close on Thursday, 19 September 2024.
- Submission Period for Individual Subscribers: Begins on Wednesday, 2 October 2024, and ends on Thursday, 3 October 2024.
- Announcement of Final Offer Shares Allotment: Sunday, 6 October 2024.
- Refund of Excess Subscription Monies (if applicable): Tuesday, 8 October 2024.
For further details regarding the IPO, visit www.ipo.MC4.com.sa.