Baker McKenzie And K&A Advised On IPO Of Saudi Arabia's Fourth Milling Company

Baker McKenzie and K&A Advised on IPO of Saudi Arabia's Fourth Milling Company

Baker McKenzie and K&A have successfully advised on the initial public offering (IPO) of Saudi Arabia's Fourth Milling Company. The company offered 162 million shares on the main market of the Saudi Exchange, representing 30% of its total share capital, with the final offer price set at SAR 5.30 per share.

Upon listing, Fourth Milling achieved a market capitalization of SAR 2.86 billion, with total IPO proceeds reaching approximately SAR 858.6 million. The book-building process for the IPO generated an impressive SAR 102.2 billion, resulting in a subscription coverage of around 119 times.

Baker McKenzie advised Fourth Milling on both the listing and public offering, led by Of Counsel Nadine Nassar, who was supported by a team of associates. Nassar commented, "This successful offering is a testament to the company’s robust growth and potential for continued success."

K&A served as legal counsel to Riyad Capital, which acted as the financial adviser, underwriter, and lead manager for the offering. The firm’s Managing Partner, Zeyad Khoshaim, led the transaction, supported by Senior Associate Ghaida Meaigel and a dedicated team of capital markets associates.

Fourth Milling has experienced substantial sales growth over the past few years, with revenues increasing at a compound annual growth rate (CAGR) of 29.7%, rising from SAR 336 million in 2021 to SAR 566 million in 2023.

This IPO marks the fourth milling company that Baker McKenzie has advised on an IPO, following its involvement with Arabian Mills in October 2024, which K&A also participated in, as well as the Modern Mills Company in March 2024 and the First Milling Company in June 2023.

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