RIYADH, SAUDI ARABIA — Arabian Mills for Food Products Company plans to proceed with an initial public offering and list ordinary shares on the main market of the Saudi Exchange.

It was approved to offer 15,394,502 shares, representing 30% of the company’s issued share capital, by way of a sale of existing shares by Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company — Ajlan & Bros, Sulaiman Abdulaziz Al-Rajhi International Company, and The National Agricultural Development Company. The final offer price will be determined at the end of the book-building period.

Arabian Mills, operating in Saudi Arabia, produces, distributes and sells wheat flour and derivative products, animal feed and bran to customers across the country.

It is one of the market-leading milling companies in the Gulf Cooperation Council (GCC), with the largest daily flour production capacity in Saudi Arabia.

Arabian Mills has a daily flour production capacity of 4,920 tonnes and daily feed milling capacity of 600 tonnes. It is the second largest in terms of market share in Saudi Arabia and is among the top 10 largest players in the animal feed market.

“The decision to go public is a natural next step for Arabian Mills,” said Ajlan Alajlan, chairman, Arabian Mills. “It will provide us with the platform to invest and expand our production capacities and capabilities, and expand our product portfolio to meet the growing demand from Saudi Arabia’s growing F&B and agribusiness while furthering our ambitions to embed sustainable practices at every step of the milling and distribution process. With the support of new shareholders, we aim to take Arabian Mills to new heights, driving growth and creating long-term value for all stakeholders in line with Saudi Vision 2030. We look forward to this exciting new chapter and the opportunities it brings.”

The company is located in Riyadh and has two other plants located in Hail and Jazan, close to livestock farming and tourism hubs serving other key regions.

Rohit Chugh, chief executive officer, Arabian Mills, said the decision to go public will accelerate the company’s growth trajectory.

“Since our privatization in 2021, we have significantly scaled the business, increased profitability margins, and strengthened our market share,” he said. “This was only made possible thanks to the efforts of our teams and the backing of our shareholders. Looking ahead, the growing market for flour, feed, and bran in the Kingdom presents compelling opportunities, and we are well-positioned to capitalize on robust demand through continuous innovation and quality enhancements.