Baker McKenzie has successfully advised Arabian Mills for Food Products Company (Arabian Mills), a leading Saudi-based flour milling company, on its Regulation S Initial Public Offering (IPO) on the main market of the Saudi Exchange (Tadawul). The implied market capitalization of Arabian Mills at listing is estimated to amount to SAR 3,387 million (equivalent to USD 903 million), with the IPO proceeds amounting to SAR 1,016 million (equivalent to USD 271 million). The institutional book-building process garnered total orders of SAR 134.1 billion (equivalent to USD 35.7 billion) from local and international investors, and was approximately 132 times oversubscribed, indicating a strong level of demand.
The team provided comprehensive legal counsel on all legal aspects of the transaction, which included listing of Arabian Mills’ shares on Tadawul and the public offering of 15,394,502 ordinary shares, representing 30% of Arabian Mills’ share capital, at an offer price of SAR 66 (equivalent to USD 17.6) per share. Arabian Mills received approval from the CMA on 24 June 2023, and the listing took place on 8 October, 2024.
Operating since 1977, Arabian Mills has established a strong market presence across its core product lines. The company has consistently demonstrated profitable growth, further cementing its market leadership.
Mohammad Al Rasheed, Baker McKenzie’s UAE Managing Partner, who led on the transaction, commented: “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.”
“This transaction underscores our commitment to supporting key players in the region as they take bold steps in expanding their market presence,” he concluded.
The Baker McKenzie cross-border team was led by Mohammad Al Rasheed and Ayatt Ashour, with support from Bayan AlDaej. Charles Farnsworth (Senior Counsel – Baker McKenzie London) provided support on the transaction.
This marks the third milling company the Firm has advised on an IPO, further showcasing its deep expertise in the sector.
