Modern Mills sets IPO price range and kicks off book-building

RIYADH: Modern Mills Company (MMC), a leading milling and nutrition company in Saudi Arabia, has announced the price range for its initial public offering (IPO) of 30% of its share capital, as well as the start of the institutional book-building period.

The price range for the IPO has been set at SAR 44 to SAR 48 per share, valuing the company at up to SAR 3.9 billion. The offering consists of 24.5 million ordinary shares, representing 30% of MMC’s share capital, to be sold by the current shareholders.

The book-building process, which will determine the final price and allocation of the shares, is open to qualified institutional investors from Thursday 15 February 2024 to Wednesday 21 February 2024. The minimum and maximum number of shares that can be applied for by the participating parties are 50,000 and 4.1 million, respectively.

The final price and allocation of the shares will be announced after the completion of the book-building process, followed by the subscription period for individual investors. Depending on the demand from individual investors, the bookrunners may reduce the number of shares allocated to institutional investors to a minimum of 22.1 million, representing 90% of the total offer shares.

HSBC Saudi Arabia is acting as the sole financial advisor, global coordinator, joint bookrunner, underwriter and lead manager on the IPO.

Modern Mills is a national and key player in the Kingdom’s food security landscape, with a diversified portfolio of products and services, including flour, animal feed, bakery ingredients, pasta, and biscuits. The company operates 11 milling plants across the Kingdom, with a total milling capacity of 3.6 million tons per year.