IPO Monitor | Fourth Milling Sets IPO Price at SAR 5.30 as Institution Oversubscribed by 119 Times
Tadawul All Shares Index TASI.SA | 11275.90 | 0.00% |
FOURTH MILLING 2286.SA | 3.98 | 0.00% |
Fourth Milling Company (the “Company”), a leading flour production company in the Kingdom of Saudi Arabia, has successfully concluded its institutional book-building process as part of its upcoming initial public offering (IPO) on the Main Market of the Saudi Exchange.
Key Information for Investors at Current Stage:
- Final Offer Price: The IPO price has been set at SAR 5.30 per share.
- Institutional Book-Building Success: The institutional portion was oversubscribed by 119 times.
- Retail Subscription Period: The 2-day retail subscription period will begin on Wednesday, October 2, 2024, and close at the end of Thursday, October 3, 2024.
Company CEO’s Statement:
Khalid Al-Maktary, Chief Executive Officer of Fourth Milling Company, commented: “The final offer price for our IPO, following a highly successful book-building process, is a reflection of the strong interest from institutional investors and their confidence in our strategic vision and operational excellence within the Kingdom’s milling industry. This exceptional demand will pave the way for a successful IPO and deliver another step on MC4’s growth journey. Our commitment to quality, innovation, and sustainable growth positions us for continued success.”
Investor Groups:
Tranche (A): Participating Parties
This tranche is composed of investors eligible to participate in the book-building process according to the Instructions for Book-Building Process and Allocation Method in Initial Public Offerings, issued by the Capital Market Authority (CMA). The total number of shares allocated to this tranche is 162 million, representing 100% of the total Offer Shares. However, if there is significant demand from Individual Subscribers, as outlined in Tranche (B), the Lead Manager has the discretion to reduce the number of shares allocated to Participating Parties to a minimum of 129.6 million shares, which would represent 80% of the total Offer Shares. The exact number and percentage of shares allocated will be determined by the Financial Advisor, in coordination with the company, based on the demand during the book-building process.
Tranche (B): Individual Subscribers
This tranche includes Saudi Arabian nationals and Saudi female divorcees or widows with minor children from marriages to non-Saudi persons, who can subscribe either in their own name or in the names of their minor children, provided that they prove their status. Additionally, any non-Saudi GCC nationals with a bank account in Saudi Arabia or any national of a GCC country with an account at a Receiving Agent and the right to open an investment account with a capital market institution are eligible. A maximum of 32.4 million shares, representing 20% of the total offer, is allocated to this group. If individual subscriptions do not fully cover the number of shares allocated, the Lead Manager may reduce the number of shares allocated to this tranche accordingly. Furthermore, if any duplicate or invalid subscriptions are detected, they will be voided as per the applicable regulations.
Expected Offering Timetable
| Event | Date |
|---|---|
| Offering Period for Participating Parties and Book-Building Process | A period of five days, starting from Sunday, 12/03/1446H (corresponding to 15/09/2024G) 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 Tuesday, 28/03/1446H (corresponding to 01/10/2024G). |
| Submission Period for Individual Subscribers | A period of two days, starting from Wednesday, 29/03/1446H (corresponding to 02/10/2024G) and closing at the end of Thursday, 30/03/1446H (corresponding to 03/10/2024G). |
| Deadline for submission of Subscription Application Forms and payment of subscription monies by Individual Subscribers | On Thursday, 30/03/1446H (corresponding to 03/10/2024G). |
| Deadline for payment of subscription money by Participating Parties based on their initially allocated Offer Shares | On Tuesday, 28/03/1446H (corresponding to 01/10/2024G). |
| Announcement of final Offer Shares allotment | On Sunday, 03/04/1446H (corresponding to 06/10/2024G). |
| Refund of excess subscription monies (if any) | Tuesday, 05/04/1446H (corresponding to 08/10/2024G |
| 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 are indicative. Actual dates will be communicated on the Tadawul website (www.saudiexchange.sa), and the Company’s website (www.mc4.com.sa). | |
Read the full Prospectus
Further updates regarding this IPO will be provided as more information becomes available.
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