Dubai: The Saudi company Arabian Mills for Food Products Company is asking SR66 a share for its IPO, a price that is at the top end of the range it had earlier announced. The subscription period for individual investors starts next Wednesday (September 18) and ends the next day.
The final offer price sets up a market cap of SR3.38 billion ($903 million) at the time of listing on the saudi Tadawul, with the proceeds being SR1.01 billion 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).
The IPO comprises 15.39 million ordinary shares, representing 30 per cent of the issued share capital.
The institutional book-building process recorded total orders of SR134.1 billion from local and international investors. The institutional part of the offering was around 132 times oversubscribed, indicating 'strong level of demand'.
“The extraordinary demand we received for the institutional offering reflects the strong conviction those investors have in Arabian Mills and our proven ability to convert opportunities in the KSA flour and feed market into sustainable and profitable growth," said Rohit Chugh, CEO.
Retail allocation
If the IPO generates sufficient demand among individual investors, the lead manager has the right to reduce the number of offered shares for institutional subscribers to a 'minimum of 13,855,052 ordinary shares, representing 90 per cent of the total offer shares'.
Arabian Mills has appointed HSBC Saudi Arabia as financial advisor, bookrunner, underwriter, and lead manager.
