Dubai: Fourth Milling Company’s (MC4), Saudi Arabia’s leading flour production company, initial public offering (IPO) will commence on October 2.
MC4 plans to offer 162 million shares, representing 30 per cent of its total share capital, on the Saudi stock exchange, according to a press release.
The announcement of the price range and the institutional book-building phase will start on September 15, with the final offering price set to be revealed on September 25.
Share allocations will be finalised by October 6.
The company will not benefit from the proceeds of this offering, which will go to the selling shareholders.
In 2021, MC4 was acquired by a consortium including Al Othaim Markets, Allana International, and United Feed Manufacturing Company for $229 million (Dh841 million) as part of Saudi Arabia’s privatisation programme.
Since then, MC4’s revenues have increased at a compound annual growth rate (CAGR) of nearly 30 per cent, rising from $89.5 million (Dh328 million) in 2021 to $150 million (Dh550 million) in 2023.
Its net income margin has grown from 15 per cent in 2021 to 25 per cent in 2023. MC4 operates facilities in Riyadh, Medina, and the Eastern Region, producing flour, feed, bran, and various wheat derivatives, with a daily milling capacity of 3,150 metric tons of wheat and 450 tons of animal feed.
The milling sector plays a critical role in Saudi Arabia’s food security strategy by ensuring a steady supply of flour, a staple in the local diet.
Flour consumption in the country is projected to grow at a CAGR of 3.2 per cent to reach 4.1 million tons by 2028.
