Riyadh: Saudi Arabia’s Milling Company 3 (MC3) is planning an initial public offering (IPO) next year and has invited banks to pitch for roles in the deal, two sources familiar with the matter said.
MC3, which operates flour mills in the region of Khamis Mushait, Aljouf and Aljamoom, has appointed Moelis & Co as an adviser, said the sources, declining to be named because the matter was not public.
MC3 and Moelis did not immediately respond to a request for comment.
The company is targeting an offering in the first-quarter of 2024, one of the sources said.
MC3 was one of several flour milling privatisations in Saudi Arabia. It was sold to a consortium of Al Ghurair Investment, Al Rajhi Holding Group and Masafi for 750 million riyals ($200 million) by the Saudi Grains Organization in 2020.
It is the second milling company in Saudi Arabia to seek a listing.
First Milling Co priced its IPO on Tuesday at the top of the indicative range on strong demand.
It set the price at 60 riyals a share, valuing the company at 3.33 billion riyals and raising 999 million riyals for 30 per cent of the business.
Regional companies raised $21.9 billion through IPOs last year, more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.