Modern Mills Company listing and commencement of trading on Saudi Exchange

Modern Mills Company (the “Company”, or “Modern Mills”, or “MMC”), a national and leading milling and nutrition company and a key player in the Kingdom of Saudi Arabia’s food security landscape (the “Kingdom” or “Saudi Arabia”), today listed its shares on the Main Market of the Saudi Exchange following the successful completion of its Initial Public Offering (the “IPO” or the “Offering”). The Company is now trading with the symbol: 2284.

The Company’s offering comprised of 24,549,600 shares, representing 30% of its issued share capital, with 90% of the Offer shares allocated to institutional investors and 10% to retail investors. The final Offer Price was set at the top of the price range at SAR 48 per share.

The book-building process saw robust demand from reputable local, regional and international institutional investors and generated an order book of SAR 150 billion (USD 40 billion)[1] resulting in a subscription coverage of approximately 127x of the total offered shares.  The offering size was SAR 1,178 million (USD 314 million), implying a SAR 3,928 million (USD 1,047 million) market capitalization at listing.

The number of Offer Shares that were allocated to the Individual Investors’ tranche was 2,454,960 Offer Shares, representing 10% of the total offering. The retail offering generated demand from 966,707 Saudi Arabian nationals, foreign residents in the Kingdom and GCC nationals (“Individual Investors”) for SAR 2,580 million at the IPO price of SAR 48 per share (the “Final Offer Price”), indicating an Individual Investors’ tranche coverage of 21.9x.

Osama Ashi, CEO of MMC, said: “Today marks a pivotal milestone in our journey as we debut on the Main Market of the Saudi Exchange, a testament to the incredible success of our IPO and the solid demand from institutional and retail investors alike.

Our institutional offer was oversubscribed by approximately 127 times pricing MMC’s shares at the top end of the set price range, while our retail offer had a subscription coverage of 21.9 times, signalling robust interest in MMC’s solid equity story, best-in-class operational model, highly experienced management team, and strategic direction.

Among milling companies, MMC has recorded the highest increase in flour market share in 2022 and leads the animal feed market. Our growth trajectory is underpinned by a track record of profitability, cash generation, and rewarding shareholders.

Future growth is anchored in four strategic pillars: expanding our market share in key product categories, investing in people and technology, diversifying our product portfolio, and sustainably expanding into new markets.

MMC remains aligned with Vision 2030 objectives and continues to innovate, collaborate, and contribute meaningfully to building a sustainable and secure food landscape for generations to come.”

Modern Mills appointed HSBC Saudi Arabia as Sole Financial Advisor, Global Coordinator, Joint Bookrunner and Underwriter and Lead Manager and Emirates NBD Capital KSA as Joint Bookrunner and Underwriter. Moelis & Company Saudi Limited was appointed as the Advisor to the selling Shareholders. The Company had appointed Saudi National Bank, and Al Rajhi Bank as Receiving Agents (collectively, the “Receiving Agents”) for the Individual Investor tranche.