Saudi Arabia's Modern Mills for Food Products said on Wednesday it is planning an initial public offering of 30% of its shares, the second flour mills company in the kingdom to seek a listening since the government privatized the industry.
Modern Mills plans to sell 24.5 million shares on the Saudi Exchange, equivalent to 30% of its share capital, the company said in a regulatory statement on Wednesday.
HSBC has been hired as sole financial advisor, global coordinator, joint bookrunner, lead manager, and underwriter on the IPO, with Emirates NBD as joint bookrunner and underwriter, the statement said.
Formerly known as Milling Company 3, Modern Mills was part of a wider privatization program under Saudi Arabia's Vision 2030 aimed at weaning the company off oil.
It was sold to a consortium of investors for 750 million riyals ($200 million) by the Saudi Grains Organization in 2020.
The company operates flour mills in the regions of Khamis Mushait, Aljouf, and Aljamoom in Saudi Arabia.
It is the second company in the kingdom to proceed with a listing this year. Avalon Pharma last month priced its initial public offering at the top of its range, seeking to raise as much as 492 million riyals for a 30% stake.
Companies domiciled in the Gulf Cooperation Council raised $11.0 billion in IPO proceeds in 2023, down 45% from 2022. GCC IPOs accounted for 40% of proceeds raised in EMEA during 2023, down from 56% during 2022, LSEG data showed.
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