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Saudi Arabia’s Modern Mills for Food Products Co. is gearing up to sell a 30% stake in its Riyadh initial public offering, marking the second flour milling company to embrace public listing following the government’s privatization of the industry. The company intends to offer 24.5 million shares in the listing, as announced in a statement on Wednesday. HSBC Holdings Plc has been enlisted as the sole financial adviser, global coordinator, and lead manager, while Emirates NBD Capital joins as a joint bookrunner and underwriter for the deal.
- Saudi Arabia's strategic move to privatize the flour milling industry involved dividing it into four entities, subsequently selling them to the private sector. The IPO trajectory began with First Milling Co., which went public in May with a $266 million offering. Following suit, Fourth Milling Co. is poised for a listing this year. Modern Mills, formerly known as Milling Company 3 and previously owned by the kingdom’s sovereign wealth fund, underwent acquisition by a consortium comprising MADA Holding and Al Ghurair Foods of the United Arab Emirates in 2021.
Why it matters
The IPO landscape in Saudi Arabia has witnessed notable activity, with Modern Mills marking the second company to debut this year, following Avalon Pharma's bookbuilding process for its listing, targeting up to 492 million riyals ($131 million) last month.
