Retail subscription to 32.4M shares of MC4 starts on TASI today

Logo of Fourth Milling Co. (MC4)

Retail investors started today, Oct. 2, subscription to 32.4 million shares of Fourth Milling Co. (MC4), at SAR 5.30 each, as set by the book-building process. 

The retail offering represents 20% of the total offer.

For More IPOs

The subscription process for the retail tranche will run for two days until Oct. 3.

The Capital Market Authority (CMA) approved, in June 2024, the company's request to float 162 million shares, or 30% of the capital, in an initial public offering (IPO) on the Main Market (TASI). The nominal value per share stands at SAR 1.

The company’s institutional offering, which ended last week, was 119x covered.

MC4’s IPO is the tenth this year on TASI, after Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona Co. and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28, Rasan Information Technology Co. on May 29, Almajed for Oud Co. on Sept. 15 and Arabian Mills Co. on Sept. 18. 

Tadawul witnessed eight IPOs in 2023, including MBC Holding Group Ltd., Morabaha Marina Financing Co. (MRNA) and Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma), First Milling Co. (First Mills), Lumi Rental Co., ADES Holding Co., and SAL Saudi Logistics Services Co. (SAL).

Company Profile:

MC4 was established in 2016 as a company specialized in flour, wheat derivatives and fodder industry.

In 2021, the National Center for Privatization and the Saudi Grains Organization announced finalizing the sale of MC4 to an alliance that includes Abdullah Al Othaim Markets Co. (Al Othaim), Allana International Co., and United Feed Manufacturing Co., at a value of SAR 859 million.

Al Othaim owns a 33.33% stake in Gulf Flour Milling Industrial Co. that fully owns MC4. Allana International and United Feed Manufacturing each hold a 33.33% stake in Gulf Flour.

The company's current activity is the production, packaging and sale of flour products and their derivatives, as well as animal feed and bran.

According to the prospectus, the company relies heavily on the brands it uses to make its business successful and strengthen its competitive position in the market. The company owns four brands in the Kingdom, which play a major role in its business, namely "FOOM", “FOOM the Golden", "Miller" and the company's main brand name "MC4".

Company Plants:

The company's head office is located in Dammam and its plants are distributed in three regions in the Kingdom: Dammam, Madinah and Al-Kharj.

The company's current total flour milling capacity is 3,150 tons per day, while the feed plant capacity is 450 tons per day.

Company Sales:

The company's sales are mainly generated in regions where its plants are located, namely in Eastern Province, Madinah and Riyadh. It distributes its products across the Kingdom through a network of external logistics companies.

The company achieved remarkable growth in its sales, as revenues of SAR 336 million in 2021 almost doubled to SAR 566 million in 2023, as shown in the following table:

The number of the company's employees reached 532 by the end of 2023, including 201 Saudi citizens, with a 43% localization rate.