Riyadh – Mubasher: Fourth Milling Company plans to proceed with an initial public offering (IPO) to list its ordinary shares on the Main Market of the Saudi Exchange (Tadawul), according to a press release.
The Capital Market Authority (CMA) greenlighted the company’s IPO to trade 162 million ordinary shares, representing 30% of the total issued share capital.
Meanwhile, the final offering price will be announced following the end of the institutional bookbuilding period.
The IPO’s net proceeds will be distributed to the selling shareholders, as the Saudi firm will not receive any part of the proceeds from the offering.
Bader Hamed Al Aujan, Chairman of Fourth Milling, said: “With over 40 years of experience and a commitment to quality, we have played a crucial role in transforming the industry and meeting the needs of the Saudi market.”
“As we continue to witness rapid economic growth and increased demand for high-quality flour and animal feed products, we are well-prepared for our next phase of growth through our innovative and sustainable approach,” Al Aujan continued.
He elaborated: “With the IPO, we embark on an exciting new chapter. Over the coming years we aim to further strengthen our market position, expand our product portfolio and continue to invest in infrastructure, people and processes.”
Fourth Milling has a wide sales network covering wholesalers, industries, and modern trade.
The company recorded sales growth, with revenues surging at a compound annual growth rate (CAGR) of 29.70% from SAR 336 million in 2021 to SAR 566 million in 2023.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins increased to 38% in 2023 from 32.10% in 2021, driven by higher-margin products and cost efficiencies.
Meanwhile, the net income margin grew from 14.90% in 2021 to 25.20% in 2023, with an adjusted margin of 28.40% after adjusting for non-recurring items.
