Riyadh: Saudi Arabia’s Milling Company 4 is planning a domestic initial public offering that could raise more than $200 million, according to people familiar with the matter.
The firm is working with Himmah Capital on the potential listing which could come as early as next year, the people said, asking not to be identified as the information isn’t public.
Details of the offering such as size and timeline are still preliminary and subject to change, the people added. Representatives for Himmah Capital and MC4 declined to comment.
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In recent years, Saudi Arabia split the government-controlled flour milling industry into four companies and sold them to the private sector. MC4 was sold to a group including Allana International, Abdullah Al Othaim Markets, and United Feed Manufacturing for 859 million riyals ($229 million) in 2021.
First Milling was the first of the flour milling companies to go public in an IPO that raised $266 million in May. Its shares have risen about 9 per cent since then.
A deepening crisis in the Middle East as the Israel-Hamas war intensifies has put investors on edge and risks clouding a recent resurgence of IPOs in the kingdom. Saudi Arabia’s benchmark index has fallen about 7 per cent since late September, almost erasing the year’s gains. Oil hit $90 a barrel amid growing fears that the conflict could spread across the Middle East.