CMA greenlights floating 30% of Modern Mills in IPO

Logo of Capital Market Authority (CMA)

The Capital Market Authority (CMA) approved today, Dec. 31, the application submitted by Modern Mills Co. (MMC) to float 24.55 million shares, or 30% of its capital, in an initial public offering (IPO).

The company will issue the prospectus within sufficient time ahead of the offering, the market regulator said in a statement.

The prospectus will include all relevant information that the investor needs to know before making an informed decision, including the company's financial statements, activities and management, the CMA said.

A subscription decision without reading the prospectus carefully or fully reviewing its content may involve high risks. Therefore, investors should carefully read the prospectus, which comprises detailed information on the company, the offering and risk factors, according to the statement.

If the prospectus proves difficult to understand, it is recommended to consult with an authorized financial advisor prior to making any investment decision.

The CMA's nod to of MMC’s request is valid for six months from the authority’s board resolution date. It merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.

The approval will be canceled if the offering and listing of the company's shares are not completed within this period, the statement noted.

According to Argaam's data, MMC is deemed one of the largest flour and fodder manufacturers in Saudi Arabia.