Saudi Arabia’s Fourth Milling Company (MC4) has officially kicked off investor orders for its highly anticipated initial public offering (IPO), aiming to raise up to $228.9 million (SAR 859 million). The offering is set to capitalize on the region’s strong appetite for new listings, with 162 million shares, representing 30% of the company’s total share capital, up for grabs.
The indicative share price is between SAR 5 and SAR 5.30, implying a market valuation of approximately SAR 2.8 billion ($763.2 million). The final offering price will be determined through a book-building process, with shares offered in two tranches: institutional investors and retail investors from September 15 to September 19.
MC4 has enlisted Riyad Capital as its financial adviser, global coordinator, and lead manager, while Riyad Bank and Arab National Bank will act as receiving agents for individual investors.
CEO Khalid Al Maktary highlighted the company’s successful transformation since its privatization in 2021, noting its strong market presence: “We achieved a 31.1% share in the consumer market— the highest among all flour brands, with a compound annual revenue growth rate of 29.7% from 2021 to 2023.”
Founded in 2017 as part of Saudi Arabia’s broader Vision 2030 initiative to diversify its economy, MC4 was privatized and sold to a consortium including Al Othaim Markets, Allana International, and United Feed Manufacturing Company for $229 million (SAR 859 million).
By 2023, MC4’s revenues reached SAR 556 million, growing at a 29.7% CAGR since 2021. The company also improved its profitability, with profits increasing from 14.9% to 25.2% over the same period. It generated SAR 163 million in free cash flow in 2023 and plans to distribute 70% of its annual net profits as dividends.
MC4 operates factories across Riyadh, Medina, and the Eastern Region, with a daily milling capacity of 3,150 metric tonnes of wheat grains and 450 tonnes of animal feed.
Following the successful public offerings of other Saudi milling firms, such as First Milling Company in May 2023, which raised $266 million, and Modern Mills, which raised $320 million, MC4’s IPO further underscores the robust demand for GCC listings. Earlier this month, Arabian Mills priced its IPO at the top of its range, raising $271 million.
