IPO Monitor | Arabian Mills for Food Products Co. (Arabian Mills) IPO Overview - Offer Timetable and Substantial Shareholders Revealed

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Tadawul All Shares Index

TASI.SA

10715.98

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ARABIAN MILLS

2285.SA

39.90

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Arabian Mills for Food Products Co. (Arabian Mills) IPO Overview

Company Name: Arabian Mills for Food Products Co.
Market: TASI (Tadawul)
Core Activities: Production and distribution of flour products, wheat derivatives, and animal feed across Saudi Arabia.
Capital: SAR 513.15 million
Total Shares: 51.32 million
Par Value: SAR 10 per share

IPO Details

Offering Size: 30% of the company's capital, equivalent to 15.39 million shares.
Qualified Subscribers: Both participating institutions and individual investors.
Institutional Offering Period & Book Building: September 1-5, 2024
Retail Offering Dates: September 18-19, 2024
Final Allocation Date: September 26, 2024
Surplus Refund (if any): October 3, 2024

Investment Limits

Retail Investors:
- Minimum Subscription: 10 shares
- Maximum Subscription: 250,000 shares
Institutional Investors:
- Minimum Subscription: 50,000 shares
- Maximum Subscription: 2.57 million shares

Company Background

Arabian Mills for Food Products Co., formerly known as Second Milling Company (MC2), was established in October 2016 as part of the Saudi Grains Organization's privatization initiative. The company specializes in producing and storing flour, other wheat derivatives, and animal feed. Its products are marketed under two key trademarks: "Finah" for food products such as flour and wheat derivatives, and "Kamel" for animal feed products, including poultry and livestock feed.

The company holds a significant position in the Saudi flour market, ranking second with a 27.8% market share, equivalent to 943,700 tons of flour. Arabian Mills has a daily production capacity of 4,920 tons for flour and 600 tons for feed.

Ownership and History

In April 2021, Arabian Mills was acquired by a consortium consisting of Ajlan & Bros Holding Group (ABHG), Al Rajhi International for Investment (RAII), National Agricultural Development Co. (NADEC), and Olam International, with a winning bid of SAR 2.13 billion. Following the acquisition, the company underwent restructuring, leading to the consolidation of ownership. Currently, ABHG holds a 50.13% stake, RAII 35%, and NADEC 14.87%.

Substantial Shareholders of the Company Pre- and Post Offering

Shareholder	Pre-Offering No. of Shares	Pre-Offering Direct Ownership	Pre-Offering Par Value (SAR)	Post-Offering No. of Shares	Post-Offering Direct Ownership	Post-Offering Par Value (SAR)
Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company - Ajlan & Bros	25,723,254	50.13%	257,232,540	18,006,278	35.09%	180,062,780
Sulaiman Abdulaziz Al-Rajhi International Company	17,960,252	35.00%	179,602,520	12,572,176	24.50%	125,721,760
The National Agricultural Development Company (NADEC)	7,631,500	14.87%	76,315,000	5,342,050	10.41%	53,420,500
Public	-	-	-	15,394,502	30%	153,945,020
Total	51,315,006	100%	513,150,060	51,315,006	100%	513,150,060

Expected Offering Timetable

Event	Date
Offering Period for Participating Parties and Book-Building Period	A period of (5) days, starting from Sunday, 28/02/1446H (corresponding to 01/09/2024G) and closing at the end of Thursday, 02/03/1446H (corresponding to 05/09/2024G).
Submission Period for Individual Investors	A period of (2) days, starting from Wednesday, 15/03/1446H (corresponding to 18/09/2024G) and closing at the end of Thursday, 16/03/1446H (corresponding to 19/09/2024G).
Deadline for submission of Subscription Application Forms by Participating Parties based on the initial allocation of Offer Shares	On Sunday, 12/03/1446H (corresponding to 15/09/2024G).
Deadline for submission of Retail Subscription Application Forms and payment of the subscription monies by Individual Investors	On Thursday, 16/03/1446H (corresponding to 19/09/2024G).
Deadline for payment of subscription money by Participating Parties based on their initially allocated Offer Shares	On Tuesday, 14/03/1446H (corresponding to 17/09/2024G).
Announcement of final Offer Shares allotment	On Thursday, 23/03/1446H (corresponding to 26/09/2024G).
Refund of excess subscription monies (if any)	On Thursday, 30/03/1446H (corresponding to 03/10/2024G).
Expected trading commencement date for the Shares	Trading of the Offer Shares on the Exchange is expected to commence after all relevant legal requirements and procedures have been fulfilled. Trading will be announced in local newspapers and on the Saudi Exchange website (www.saudiexchange.sa).

Note: The above timetable and dates therein are indicative. Actual dates will be communicated through announcements appearing in national daily newspapers in KSA, and on Tadawul website (https://www.saudiexchange.sa), and the Company’s website (www. arabianmills.com)

Further updates regarding this IPO will be provided as more information becomes available

Check out the Full Arabian Mills IPO Prospectus

- Reporting by Zaid, Sahm News team

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