HSBC in Arabian Mills’ IPO

Cleary Gottlieb represented HSBC Saudi Arabia (HSBC), as the sole financial advisor, global coordinator, lead manager, bookrunner, and underwriter, in the SAR 1.016 billion (approx. $271 million) initial public offering of Arabian Mills for Food Products Company (Arabian Mills).

The IPO consisted of the secondary offering of 15.39 million ordinary shares, representing 30% of the share capital of Arabian Mills at an offer price of SAR 66 per share, implying a market capitalization of SAR 3.387 billion (approx. $903 million) for Arabian Mills. The shares were offered to the public in the Kingdom of Saudi Arabia (KSA) and internationally outside the United States in reliance on Regulation S under the U.S. Securities Act of 1933. The institutional offering and retail offering were oversubscribed 132 times and 9.2 times, respectively. The transaction priced on September 11, 2024, and closed on October 8, 2024, upon listing on the Main Market of the Saudi Exchange (Tadawul).

Arabian Mills is one of the leading milling companies in the Gulf Cooperation Council, with the largest daily flour production capacity in the KSA. Arabian Mills was initially privatized in 2021 as part of ongoing privatization efforts in the KSA in line with Vision 2030.