Saudi Arabia's Milling Company 4 (MC4) is gearing up for an initial public offering (IPO) in a bid to raise over $200 million. The IPO, which is being planned in collaboration with Himmah Capital, could take place as soon as next year, although key details such as the offering size and timeline are yet to be determined.
This move comes after Saudi Arabia's decision to privatize its flour milling industry. The government divided the industry into four parts and sold them to private entities. MC4 was purchased in 2021 by a consortium that included Allana International, Abdullah Al Othaim Markets, and United Feed Manufacturing Co. for 859 million riyals ($229 million).
Another entity from this division, First Milling Co., successfully raised $266 million in its IPO and has since seen a 9% increase in share value. Fahad Abuljadayel played a significant role in these events.
However, the current market conditions present certain risks to MC4's impending IPO. The escalating conflict between Israel and Hamas, soaring oil prices which have hit $90 a barrel, and a 7% drop in Saudi Arabia's benchmark index, almost negating the year's gains, could potentially hamper the recent resurgence of IPOs in the region.
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