Saudi Arabia’s Fourth Milling Company (MC4) plans to list 162 million shares (which is equal to a 30 percent stake) on its local stock market, according to a statement by the Saudi capital markets authority (CMA).

CMA said it had approved Fourth Milling Company’s IPO application. However, no specific date for the floatation was provided.

Saudi Arabia’s Fourth Milling Company

MC4 was established in 2017 as a part of a larger privatisation initiative under Saudi Arabia’s Vision 2030 policy, which sought to diversify the country’s economy and reduce its dependence on oil.

In 2021, MC4 was sold to a group made up of Al Othaim Markets, Allana International, and United Feed Manufacturing Company for 859 million riyals ($229 million).

With operations in Riyadh, Medina, and the eastern part of the nation, Fourth Milling Company produces flour, feed, bran, and a variety of wheat derivatives. Its mills can process 3,150 metric tonnes of wheat grains per day and produce 450 tonnes of animal feed per day.

MC4’s IPO would continue a run of listings in the Gulf nation and come after Modern Mills, formerly known as MC3, floated in March. During that flotation, the company raised $314.6 million by selling a 30 percent share.

Additionally, the CMA, on Monday, said that it had accepted Arabian Mills’, formerly known as MC2, IPO application.

Saudi Arabia dominates GCC IPO market

According to Kuwait Financial Centre report, Saudi Arabia dominated the GCC market for IPOs, with a 594 percent annual increase in the first quarter of 2024.

The report described the dynamic environment of initial public offerings (IPOs) in the Gulf Cooperation Council (GCC) and highlighted notable changes and patterns in the movement of capital.