Saudi Arabia's Modern Mills for Food Products (MMC), which plans to sell 30% of its share capital in an IPO, has set the final offer price at the top of the indicated range at 48 riyals per share ($12.80), and is on track to raise SAR 1.17 billion ($314 million).

The final price implies a market capitalization of SAR3.93 billion at listing, the company said in a statement on Wednesday.

The institutional book-building process generated an order book of approximately SAR 150 billion.

Osama Ashi, CEO of MMC said: "Subscriptions were covered approximately 127 times and we are pricing at the top of the set range as a direct function of the robust institutional demand for MMC shares. This demand was driven by a renowned set of local, regional and global institutional investors..."

Modern Mills is the second Saudi flour mills company to seek a listing since the government privatised the industry. It was sold for SAR750 million by the Saudi Grains Organization in 2020 to a consortium that included Mada International Holding Company and the UAE-based Al Ghurair Foods Company.  

Mada International Holding Company holds 50% share, while Al Ghurair Foods Company has 45% and Masafi Company has a 5% share in Modern Mills.

(Writing by Brinda Darasha; editing by Seban Scaria)