Arabian Mills for Food Products Company announces final offer price of its initial public offering

Arabian Mills for Food Products Company (“Arabian Mills” or the “Company”), one of the market-leading flour milling companies in the Kingdom of Saudi Arabia (“KSA” or the “Kingdom“), announces today the successful completion of the institutional book building period for Participating Parties and the setting of the final offer price (the “Final Offer Price”) for its initial public offering (the “IPO” or the “Offering”).

The Final Offer Price has been set at SAR 66 per share, which is at the top end of the previously announced price range for the IPO. The Final Offer Price implies a market capitalization of the Company at listing of SAR 3,387 million (US$ 903 million), with the Offering proceeds being SAR 1,016 million (US$ 271 million) for the Selling Shareholders, Abdulaziz Al Ajlan Sons for Commercial and Real Estate Investments – Ajlan & Bros, Sulaiman Abdulaziz Al-Rajhi International Company, and the National Agricultural Development Company (NADEC).

Rohit Chugh, Chief Executive Officer, Arabian Mills, said:

“The extraordinary demand we received for the institutional offering reflects the strong conviction those investors have in Arabian Mills, our strategic vision, and our proven ability to convert opportunities in the KSA flour and feed market into sustainable and profitable growth. It also underscores the confidence in our operational capabilities, diversity and quality of our products, our commitment to R&D and innovation, and their belief in our team. We are excited to soon welcome new shareholders on board and, together, take Arabian Mills into its next phase of growth and expansion, and unlock greater value for all stakeholders.”

The subscription period for retail investors that qualify as Individual Investors as defined in the Prospectus starts on Wednesday, 18 September 2024G and ends on Thursday, 19 September 2024G. Final allocations will be announced on Thursday, 26 September 2024G, with any refunds of excess subscription monies to be made by Thursday, 3 October 2024G. Trading of the Company’s shares on the Main Market of the Saudi Exchange is expected to commence after the satisfaction of all relevant statutory requirements.

Offer Details

• The Final Offer Price for the Offering has been set at SAR 66 per share, implying a market capitalization at listing of SAR 3,387 million (US$ 903 million).
• The total size of the Offering is SAR 1,016 million (US$ 271  million).
• The Offer Shares will be listed and traded on the Main Market of the Saudi Exchange following the completion of the IPO and listing formalities with the Capital Market Authority (“CMA”) and the Saudi Exchange, with the date to be announced at a later stage.

• The Offering comprises 15,394,502 ordinary shares (“Offer Shares”), representing 30% of the Company’s issued share capital, by way of a sale of existing shares by Abdulaziz Al Ajlan Sons for Commercial and Real Estate Investments Ajlan & Bros, Sulaiman Abdulaziz Al-Rajhi International Company, and the National Agricultural Development Company (NADEC) (collectively, the “Selling Shareholders”).
• The number of Offer Shares to be allocated to Participating Parties effectively participating in the bookbuilding process is 15,394,502 ordinary shares, representing 100% of the total Offer Shares. In the event there is sufficient demand by Individual Investors (as defined in the Prospectus), the Lead Manager shall have the right to reduce the number of Offer Shares allocated to Participating Parties to a minimum of 13,855,052 ordinary shares, representing 90% of the total Offer Shares. The Financial Advisor, in coordination with the Company, shall determine the number and percentage of Offer Shares to be allocated to Participating Parties.
• Following completion of the Offering, the net Offering proceeds will be distributed to the Selling Shareholders on a prorata basis, based on their respective ownership percentage of the Sale Shares.
• With respect to the Offering, the Company has appointed HSBC Saudi Arabia as Financial Advisor, Global Coordinator, Bookrunner, Underwriter, and Lead Manager (the “Financial Advisor” or “Lead Manager”). Alrajhi Bank, Saudi Awwal Bank (SAB), and Banque Saudi Fransi have been appointed as Receiving Agents for retail investors (“Receiving Agents”).