SAUDI ARABIA — The Saudi Capital Market Authority (CMA) has announced its approval for the Arab Mills Company for Food Products to list 15.4 million shares, representing 30 percent of its total shares, on the local stock exchange, Tawadul.

The Capital Market Authority (“CMA”) Board has issued its resolution dated 18/12/1445H corresponding to 24/06/2024G approving Arabian Mills for Food Products Company’s (“the company”) application for the Registration and the offering of (15,394,502) shares representing (30%) of the Company’s share capital,” the statement read.

The CMA stated that the prospectus detailing the offering will be published well in advance of the subscription start date, including the Company’s financial statements, activities and management, although it did not provide a specific timetable for the offering.

The CMA’s approval on the application shall be valid for (6) months from the CMA Board resolution date. The approval shall be deemed cancelled if the offering and listing of the Company’s shares are not completed within this period.

Formerly known as the Second Mills Company, the Arabian Mills Company operates three mills located in Riyadh, Jazan, and Hail, with a combined production capacity of approximately 4,920 tons of flour per day.

The decision to list the company on the stock exchange aligns with Saudi Arabia’s Vision 2030, a comprehensive blueprint for economic diversification aimed at reducing the country’s reliance on oil revenues.

As part of the broader privatization initiative under Vision 2030, the General Authority for Food Security, previously known as the General Grains Corporation, sold the Arabian Mills Company for 2.13 billion riyals (US$ 568 million) in 2021.

The sale was made to a consortium comprising Abdul Aziz Al-Ajlan Sons Company for Commercial and Real Estate Investment, Al Rajhi International Investment Company, the National Agricultural Development Company (NADEC), and Olam International Company.

The impending listing of the Arabian Mills Company on the stock exchange follows the successful offering of 30 percent of the Modern Mills Company, formerly known as the Third Mills Company, in March.

This offering raised US$ 314.6 million and forms part of a series of initial public offerings in the Kingdom, demonstrating Saudi Arabia’s commitment to privatization and market reforms as part of its long-term economic strategy.

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