SAUDI ARABIA – Modern Mills Company, the nation’s leading milling and nutrition enterprise, has officially commenced trading on the Saudi Exchange (Tadawul) after a highly successful initial public offering (IPO).
The IPO generated a staggering SAR150bn (US$40B) in orders, with a final offering size of SAR1,178m (US$314M), underscoring the immense appetite for investment in Saudi Arabia’s expanding food industry.
The IPO, which saw the offering of 24,549,600 shares constituting 30 per cent of the company’s issued share capital, concluded with resounding success.
The company now trades under the symbol ‘2284’, marking a significant milestone in its journey towards greater market accessibility and expansion.
With 90 per cent of the shares allocated to institutional investors and 10 per cent to retail investors, the final offer price was set at SAR48 per share, reflecting strong investor confidence in the company’s potential and performance.
The book-building process witnessed overwhelming interest from a diverse array of investors, including local, regional, and international institutions, resulting in a subscription coverage of approximately 127 times the total offered shares.
Osama Ashi, CEO of Modern Mills Company, expressed his gratitude for the enthusiastic response from investors, both institutional and retail.
He attributed the company’s success to its exceptional equity story, operational excellence, and strategic vision, which have solidified its position as a market leader in key product categories and a vital contributor to the kingdom’s food security.
“Our institutional offer was oversubscribed by approximately 127 times, pricing our shares at the top end of the set price range,” said Ashi.
“Meanwhile, our retail offer had a subscription coverage of 21.9 times, signalling robust interest in the company’s solid equity story, best-in-class operational model, highly experienced management team, and strategic direction.”
Highlighting the company’s impressive performance in the market, Ashi pointed out, “Among milling companies, Modern Mills Company has recorded the highest increase in flour market share since 2022 and leads the animal feed market.
“Our growth trajectory is underpinned by a track record of profitability, cash generation, and rewarding shareholders.”
Looking ahead, Ashi outlined the company’s growth strategy, which includes expanding market share, investing in technology and talent, diversifying the product portfolio, and venturing into new markets.
He reiterated the company’s commitment to contributing to Saudi Arabia’s Vision 2030 objectives and ensuring a sustainable food landscape for future generations.
Modern Mills Company appointed HSBC Saudi Arabia and Emirates NBD Capital Saudi Arabia as financial advisors and coordinators for the IPO, with Moelis & Company Saudi Limited serving as the advisor to the selling shareholders.
Saudi National Bank and Al Rajhi Bank acted as receiving agents for the individual investor tranche.
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