Riyadh – Mubasher: Arabian Mills for Food Products Company intends to proceed with an initial public offering (IPO) on the Saudi Exchange (Tadawul), according to the company’s announcement on 21 August 2024.
The Saudi flour milling company plans to list and offer 15.39 million ordinary shares, representing 30% of its share capital, on the Main Market of Tadawul as per the Capital Market Authority’s (CMA) approval on 24 June this year.
The IPO will be carried out by way of selling existing shares by Abdulaziz Al Ajlan Sons for Trading and Real Estate Investment Company (Ajlan & Bros), Sulaiman Abdulaziz Al Rajhi International Company, and the listed National Agricultural Development Company (NADEC).
Arabian Mills noted that the final IPO price will be determined at the end of the book-building period.
Chairman of Arabian Mills, Ajlan Alajlan, said: “Today we are one of the leading wheat and feed milling companies in Saudi Arabia. Our commitment to quality and excellence is resolute, enabling us to serve the Saudi community’s daily nutrition needs while contributing to the Kingdom’s food security agenda.”
Alajlan added: “The decision to go public is a natural next step for Arabian Mills. It will provide us with the platform to invest and expand our production capacities and capabilities, and expand our product portfolio to meet the growing demand from KSA’s growing F&B and agribusiness while furthering our ambitions to embed sustainable practices at every step of the milling and distribution process.”
From his part, Rohit Chugh, the CEO of Arabian Mills, said: “Since our privatisation in 2021, we have significantly scaled the business, increased profitability margins, and strengthened our market share. This was only made possible thanks to the efforts of our teams and the backing of our shareholders.”
Chugh noted: “Looking ahead, the growing market for flour, feed, and bran in the Kingdom presents compelling opportunities, and we are well-positioned to capitalize on robust demand through continuous innovation and quality enhancements.”
The CEO concluded: “By going public, we are also committing to higher standards of transparency and corporate governance, which we believe will ultimately benefit our shareholders and other stakeholders alike. This IPO is a catalyst for Arabian Mills to achieve sustainable, long-term growth and to continue our purpose of driving milling excellence and delivering nutrition.”
The company’s focused strategy aims to deliver value and further our growth ambitions, Chugh highlighted, adding: “We have a robust product pipeline, which includes the launch of new SKUs and variations tailored to meet diverse consumer needs and preferences, supported by an effective marketing and sales strategy. We are also expanding our presence in the Kingdom by opening distribution centres in strategic locations to ensure we reach more customers more efficiently.”
It is worth noting that Tadawul has two milling companies trading their shares; Modern Mills for Food Products and First Milling.
