Securities

HSBC Saudi Arabia Announces the Price Range and Start of Institutional Book-building Period for the Initial Public Offering of Modern Mills Company

 

On behalf of Modern Mills Company (“MMC” or the “Company”), HSBC Saudi Arabia in its capacity as Sole Financial Advisor, Global Coordinator, Joint Bookrunner, Underwriter and Lead Manager on the potential initial public offering of MMC (the “offering”) announces the Offering price range, as well as the commencement of the institutional book-building period; as per the following details:

 

  • The price range for the Offering has been set at SAR (44 - 48) per share (the “Price Range”).

  • The Offering is comprised of a sale of twenty-four million five hundred forty-nine thousand six hundred (24,549,600) ordinary Shares (the “Offer Shares”), representing 30% of MMC’s share capital, by the current shareholders.

  • The minimum number of Offer shares to be applied for by the Participating Parties is fifty thousand (50,000 shares, while the maximum number of shares is four million ninety-one thousand five hundred ninety-nine (4,091,599) shares.

  • The participation in the book-building process is confined to the Participating Parties in accordance with the Instructions for Book Building Process and Allocation Method in Initial Public Offerings issued by the Board of the Capital Market Authority.

  • The final price per Offer Share will be determined after the completion of the book-building process, to be followed by the Individual Subscribers subscription process, the number of Offer Shares to be provisionally allocated to Participating Parties is twenty-four million five hundred forty-nine thousand six hundred (24,549,600) Offer Shares, representing 100% of the total Offer Shares. Final allocation of the Offer Shares will be made after the end of the subscription period for Individual Investors. If there is sufficient demand by Individual Subscribers, the Bookrunners may reduce the number of Offer shares allocated to Participating Parties to a minimum of twenty-two million ninety-four thousand six hundred forty (22,094,640) shares, representing 90% of the total Offer Shares.

  • Bidding and book-building period for Participating Parties starts from Thursday 15 February 2024 and closes 4:00PM KSA time on Wednesday 21 February 2024.

 

For more information, please visit the Capital Market Authority website (www.cma.org.sa) and MMC’s website (https://ipo.modernmills.com.sa) where the Offering Prospectus is published.

 

Press release

 

Date: 15 February 2024