Baker McKenzie advised Arabian Mills in connection with its initial public offering (IPO) on the main market of the Saudi Exchange.
The flour milling company plans to raise as much as SAR 1,016 million (US$271 million) by selling a 30% stake, or about 15.4 million shares, on Tadawul. The offer price was set at SAR 66 (US$17.6) per share.
The institutional book-building process garnered total orders of SAR 134.1 billion (US$35.7 billion) from local and international investors, and was approximately 132 times oversubscribed.
Arabian Mills received approval from the Capital Market Authority (CMA) on June 24, 2023, and the listing took place on October 8, 2024.
Baker McKenzie’s UAE managing partner, Mohammad Al Rasheed, who led on the transaction, said: “We are proud to have worked alongside Arabian Mills on this significant milestone. This IPO represents not only a new chapter in our client’s growth journey but also contributes to the broader development of the Kingdom’s food and agriculture sectors.”
“This transaction underscores our commitment to supporting key players in the region as they take bold steps in expanding their market presence,” he said.
Operating since 1977, Arabian Mills has the largest flour milling capacity in Saudi Arabia.
It is the third milling company the firm has advised on an IPO, after the Modern Mills Company in March 2024 and the First Milling Company in June 2023.
In July this year, a number of prominent corporate lawyers at international law firms in Saudi Arabia told Law Middle East that IPO activity will remain strong in the second half of 2024. This followed analysis which showed that Saudi Arabia led the listing activity in the GCC with 19 public offerings in the first half of the year.
