Saudi Arabia’s Fourth Milling Company to list 162M shares in local stock market

SAUDI ARABIA – The Saudi capital markets authority (CMA) has approved the initial public offering (IPO) application of Saudi Arabia’s Fourth Milling Company (MC4), setting the stage for the company to list 162 million shares, equivalent to a 30 percent stake, on the local stock market.

However, the CMA has not provided a specific date for the flotation.

The decision to list the company on the stock exchange aligns with Saudi Arabia’s Vision 2030, a comprehensive blueprint for economic diversification aimed at reducing the country’s reliance on oil revenues.

MC4 was established in 2017 as part of Saudi Arabia’s Vision 2030 policy.In 2021, the company was sold for 859 million riyals (US$229 million) to a consortium comprising Al Othaim Markets, Allana International, and United Feed Manufacturing Company.

With operations in Riyadh, Medina, and the eastern region of Saudi Arabia, MC4 specializes in the production of flour, feed, bran, and various wheat derivatives. The company’s facilities have the capacity to process 3,150 metric tonnes of wheat grains per day and produce 450 tonnes of animal feed daily.

The forthcoming IPO of MC4 continues a trend of significant listings in the Gulf region.

This comes after, recently, the CMA announced its approval for the Arab Mills Company for Food Products to list 15.4 million shares, representing 30 percent of its total shares, on the local stock exchange, Tawadul.

Additionally, earlier this year, Modern Mills, formerly known as MC3, floated 30 percent of its shares in March, raising US$314.6 million.

A report by Kuwait Financial Centre highlighted Saudi Arabia’s dominance in the Gulf Cooperation Council (GCC) market for IPOs, noting a remarkable 594 percent annual increase in the first quarter of 2024.

The report underscores the dynamic nature of the IPO landscape within the GCC, pointing to substantial changes and trends in capital movement.

In January, Bloomberg reported that MC4 had picked Riyad Capital to manage its initial public offering (IPO) on Tadawul after previously working with Himmah Capital to launch an IPO, which could potentially raise more than US$200 million.

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