Today.. Individual subscriptions for 2.45 million shares of Modern Mills shares in Tassie began

Modern Mills Company logo for food products

Today, Tuesday, March 5, 2024, individual subscriptions for 2.455 million shares of the company’s shares will begin. Modern mills for food products At a price of 48 riyals per share, determined through a book-building process.

To see more IPOs in the main market and growth

The individual subscription period will last for two days, ending on Wednesday, March 6, 2024.

The Financial Market Authority had Approved On December 31, 2023, the company requested the registration and offering of 24.55 million shares, representing 30% of the company’s total shares.

The subscription for institutions ended last week, with the offering being covered by 127 times the total shares offered.

The IPO of Modern Mills Food Products Company is the second this year in the main market, after the IPO of Avalon Pharma on January 30.

During the past year, the Saudi market witnessed 8 IPOs that included both companies Flexible Murabaha financing AndResources for manpowerand a company Jamjoom Pharmaceutical Factoryand a company First millsand a company Lome for rentand a company Addis Holdingsand a company Askedand a group MBC.

Most important company information:

The Modern Mills Company for Food Products began its work as a group of wheat mills affiliated with the Public Authority for Food Security in 1972, and in 2016 the company was established under the name of the Third Mills Company in the city of Khamis Mushait, and its headquarters are currently in the city of Jeddah.

The company was established to provide and produce flour products in specific areas in the Kingdom of Saudi Arabia and to support food security in the Kingdom. Its main commercial activities included the production and storage of flour and feed. The company’s current activity is the production of flour products, its derivatives, animal feed, and animal bran, and their packaging and sale.

The company’s activities, according to its commercial register, include practicing and implementing the following purposes: Wheat packing and milling, barley packing and milling, manufacture of concentrated animal feed, wholesale of barley, wholesale of bakery products, retail sale of barley, road transport of goods.

The Modern Mills Company runs its operations through three mills in the southern and western regions (focusing on Mecca and Medina) and the northern region of the Kingdom, with a combined daily production capacity of 3,451 tons for grinding flour, and 1,400 tons for fodder.

The following table provides an overview of the company’s factories:

The market share of the Modern Mills Company is about 24% in terms of volume and 22% in terms of value. As the following table shows:

The Modern Mills Company has the largest feed production capacity among all milling companies, 53.8% of the total, and about 1,400 tons per day.

The company has one subsidiary, which is Hassad Arabian Trading Company (one person company) in the Kingdom. It was established in 2022 and is headquartered in Jeddah, to be the distribution arm for the group’s products.

The number of Modern Mills Company employees is 520 employees, including 220 Saudi citizens, as the company’s Saudization rate reached 42.3%.

*The company will own 818.32 thousand treasury shares after the offering, through the purchase of 687.39 thousand shares (representing 84% of the treasury shares) and a grant of 130.93 thousand shares (representing 16% of the treasury shares) from the selling shareholders, in conjunction with the completion of the offering process for use within the framework of the offering program. Shares of company employees.