The company said in a statement seen by Sky News Arabia that the offering price means that the company’s market value at the time of listing will amount to 3.387 billion Saudi riyals (equivalent to 903 million dollars), and that the total proceeds from the offering amount to 1.016 billion Saudi riyals (271 million dollars) for the selling shareholders.
According to the statement, the subscription coverage reached about 132 times, reflecting high demand from the institutional segment.
The subscription period for individual subscribers will start on Wednesday, September 18 and will end on Thursday, September 19. The final allocation of shares will be announced on Thursday, September 26. The company’s shares are expected to start trading on the main market of the Saudi Stock Exchange after fulfilling all relevant legal requirements, according to the statement.
The company announced its intention to offer 15,394,502 ordinary shares, representing 30 percent of the company’s issued capital, through the sale of the current shares owned by Abdulaziz Al-Ajlan Sons for Commercial and Real Estate Investment Company (Ajlan & Brothers), Sulaiman Abdulaziz Al-Rajhi International Company, and the National Agricultural Development Company (NADEC).
After completion of the offering, the net proceeds of the offering will be distributed to the selling shareholders on a pro rata basis based on the percentage of ownership of each of them in the selling shares.
On this occasion, Rohit Chugh, CEO of Arabian Flour Mills, said: “The exceptional demand from the institutional segment confirms investors’ confidence in the future of Arabian Flour Mills, its strategic vision, and its ability to transform the opportunities available in the Kingdom’s flour and feed market into sustainable and profitable growth.”
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