Lock-up period for MC4 major shareholders ends today

Logo of Fourth Milling Co. (MC4) 

The lock-up period imposed on Fourth Milling Co. (MC4) for Industry’s major shareholders ends today, April 28 – six months after its shares were listed on the Saudi Exchange (Tadawul) on Oct. 29, 2024.

The lock-up was imposed on the major shareholder owning a total of 70% of the company’s capital.

This lock-up period prevents shareholders from disposing of their shares for six months from the start of trading.

According to the prospectus, the major shareholder is not allowed to dispose of their shares without obtaining approval from the General Food Security Authority (GFSA), the Capital Market Authority (CMA), and any other required approvals from relevant government bodies.

It is worth noting that 70% of the current shareholder's shares are pledged in favor of Riyad Bank throughout the duration of the financing agreement between the current shareholder, the company, and Riyad Bank. A portion of the capital must remain pledged to Riyad Bank, with the market value of the pledged shares covering at least 150% of any outstanding debt.

According to data available with Argaam, financing facilities were established on April 3, 2024, between Riyad Bank, the company, and Gulf Flour Milling Industrial Co., with a total value of SAR 947.45 million and a term of 15 years from the date of the Murabaha agreement.