Arabian Mills IPO: Baker McKenzie and Cleary Gottlieb the advisors
Baker McKenzie and Cleary Gottlieb are the two firms involved in the Arabian Mills IPO deal. Baker advised Arabian Mills for Food Products Company, a Saudi-based flour milling company, on its Regulation S Initial Public Offering (IPO) on the main market of the Saudi Exchange (Tadawul).
Meanwhile, Cleary Gottlieb represented HSBC Saudi Arabia as the sole financial advisor, global coordinator, lead manager, bookrunner and underwriter.
Baker McKenzie’s team
The Baker McKenzie cross-border team was led by Mohammad Al Rasheed (pictured left) and Ayatt Ashour. Bayan AlDaej and Charles Farnsworth (senior counsel, Baker McKenzie London) provided support on the transaction.
Through them, Baker Mckenzie gave comprehensive legal counsel on all legal aspects of the transaction, which included the listing of Arabian Mills’ shares on Tadawul and the public offering of 15,394,502 ordinary shares, representing 30% of Arabian Mills’ share capital, at an offer price of SAR 66 (equivalent to USD 17.6) per share. Arabian Mills received approval from the CMA on 24 June 2023, and the listing took place on 8 October 2024.
The Cleary Gottlieb Team
The Cleary team included Gamal Abouali (pictured, right), Mohamed Taha, Daniela Weerasinghe and Kay Hechaime. Chase Kaniecki, James Corsiglia and Samuel Chang advised on compliance matters.
About the IPO
The implied market capitalization of Arabian Mills at listing is estimated to amount to SAR 3,387 million (equivalent to USD 903 million), with the IPO proceeds amounting to SAR 1,016 million (equivalent to USD 271 million). The institutional book-building process garnered total orders of SAR 134.1 billion (equivalent to USD 35.7 billion) from local and international investors and was approximately 132 times oversubscribed, indicating a strong level of demand.
Arabian Mills
Operating since 1977, Arabian Mills has established a strong market presence across its core product lines. The company has consistently demonstrated profitable growth, further cementing its market leadership.