SAUDI ARABIA – Saudi company Fourth Milling, revered for its flour, feed, bran, and wheat products, has picked Riyad Capital to manage its initial public offering (IPO) on Tadawul, Bloomberg reported.
This move is a testament to the company’s growth since its establishment in 2017, boasting a robust daily production output of 3,150 tonnes and a solid presence through its branches in Madinah,
According to sources, the company is planning to go public as soon as this year
Bloomberg had previously reported that the company was working with Himmah Capital to launch an IPO, which could potentially raise more than US$200 million.
However, the latest insights point to Riyad Capital, the kingdom’s fourth-largest lender, managing the IPO’s meticulous preparation, coordination, and execution phases.
The Kingdom earlier decided to divide the government-controlled flour milling industry into four companies, which were sold to the private sector.
Fourth Milling was sold to a coalition including Alana International, Abdullah Al-Othaim Markets, and United Feed Manufacturing Company for SAR 859 million (USD 229 million) in 2021.
This comes as part of the country’s efforts to privatize some industries under the “Vision 2030” framework, aiming to diversify the economy away from oil.
So far, the Public Investment Fund (PIF) has raised billions of dollars by selling its stakes in companies to fund the National Transformation Program.
Earlier this month, Abdullah Al-Othaim Markets revealed that it appointed The Fourth Mills as a financial advisor for the process of offering a portion of its shares for public subscription on the main market. Abdullah Al-Othaim clarified that it indirectly owns a 33.3% stake in the Fourth Milling’s capital.
Market-watchers are eyeing the first half of the year for the IPO’s launch, which signals a significant milestone for the Saudi food processing industry and offers potential investors a share of this thriving enterprise.
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