Baker McKenzie Advised Arabian Mills on IPO on Saudi Exchange

Baker McKenzie Advised Arabian Mills on IPO on Saudi Exchange

Baker McKenzie acted as legal advisor to Arabian Mills in connection with its initial public offering (IPO) on the main market of the Saudi Exchange (Tadawul). The company, a key player in Saudi Arabia's flour milling industry, aims to raise SAR 1,016 million (US$271million) by selling a 30% stake, amounting to approximately 15.4 million shares at an offer price of SAR 66 (US$17.6) per share.

The IPO saw overwhelming demand, with the institutional book-building process attracting SAR 134.1 billion ( US$35.7 billion) in total orders from both local and international investors. The offering was approximately 132 times oversubscribed, highlighting strong investor confidence in Arabian Mills.

Arabian Mills received approval for the IPO from the Capital Market Authority (CMA) on June 24, 2023, and the company was officially listed on the Saudi Exchange on October 8, 2024.

Baker McKenzie's UAE managing partner, Mohammad Al Rasheed, who led the transaction, commented on the success of the IPO: “We are proud to have worked alongside Arabian Mills on this significant milestone. This IPO represents not only a new chapter in our client’s growth journey but also contributes to the broader development of the Kingdom’s food and agriculture sectors.”

He further emphasized the firm's dedication to supporting key regional players: "This transaction underscores our commitment to helping companies expand their market presence and navigate complex regulatory environments."

Arabian Mills, which has been operational since 1977, boasts the largest flour milling capacity in Saudi Arabia. This IPO marks the third time Baker McKenzie has advised a milling company on a public offering, following the Modern Mills Company in March 2024 and the First Milling Company in June 2023.

Recent market analysis suggests that IPO activity in Saudi Arabia will remain strong in the latter half of 2024, following the Kingdom's lead in listing activity within the GCC, with 19 public offerings recorded in the first half of the year.

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