SAUDI ARABIA – First Milling Company, a market-leading milling firm in Saudi Arabia, has announced its intention to proceed with an initial public offering (IPO) of 16.65 million shares representing 30% of its share capital on the Saudi Exchange.
According to Gulf News, the offering begins on May 18 and ends on June 7, with a listing to be determined at a later date, according to information on the company’s website.
This will be followed by the listing of its ordinary shares on the Main Market of the Saudi Exchange (Tadawul).
The company is one of the market leaders in the flour and compound feed market, with a wheat milling capacity of 4,200 tons daily and a feed mixing capacity of 900 tons per day. It operates four large-capacity production facilities in the Kingdom.
Eng Abdullah Ababtain, Chief Executive Officer of First Milling Company, said: “First Mills’ IPO marks an important milestone in our journey and a key step towards cementing our position as a leading player in the Saudi milling sector”.
Apart from its premium flour brand, ‘Aloula’, First Milling’s range extends to nearly 50 products, including those meant for B2B clients.
The company has a market share of 33.8% and distributes its product across the kingdom, with a prominent presence in four key regions: Makkah, Al-Qassim, Tabuk, and the Eastern Region.
The company was the first of several flour milling privatizations in Saudi Arabia, sold to Raha AlSafi consortium for US$540 million in 2020.
According to the company’s management, First Milling Company has a clear and focused strategy that will allow them to boost their market share and capture strong potential growth in the market.
“Our success has been built on a solid foundation of quality, operational excellence, and innovation, further supported by our strategic plant locations and exceptionally talented team.”
This includes building scale and capacities, enhancing operational and financial efficiencies, expanding into new product categories, improving distribution and sales channels, and sustainably growing revenue and profit.
Eng Abdullah affirmed that the company will also continue to invest in people, infrastructure, and technology to ensure that they are well-positioned to meet the evolving needs of our customers and to stay ahead of industry trends and emerging technologies.
In 2022, companies from the Middle East raised some $21.9 billion through IPOs, accounting for more than half the total from the wider Europe, Middle East, and Africa region, according to data from Dealogic.