The Saudi Capital Market Authority announced in a statement yesterday, Monday, its approval of the request of the Arab Mills Company for Food Products to list 15.4 million shares, representing 30 percent of its total shares, on the local stock exchange.
The Authority added in its statement that the prospectus will be published well in advance of the subscription start date.
The expected timetable for the offering process was not specified.
The production capacity of the Arab Mills Company, formerly known as the Second Mills Company, is approximately 4,920 tons of flour per day through its three mills in Riyadh, Jazan and Hail.
Arabian Mills was part of a broader privatization program under the kingdom's Vision 2030, which aims to shift away from dependence on oil revenues.
The General Authority for Food Security (then known as the General Grain Organization) sold it for 2.13 billion riyals ($568 million) in 2021 to a consortium including Abdulaziz Al-Ajlan Sons for Commercial and Real Estate Investment Company, Al Rajhi International Investment Company, the National Agricultural Development Company (NADEC) and Olam International.
Arabian Mills will join a series of initial public offerings in the kingdom, and its listing will follow the offering of 30 percent of Modern Mills, formerly known as Third Mills, in March in a sale that raised $314.6 million.
A press report indicated that the Saudi Fourth Mills Company is also looking forward to offering its shares for subscription during the current year.
