SAUDI ARABIA – First Milling Company (First Mills), a market-leading milling firm in Saudi Arabia along with financial advisor SNB Capital has announced it has determined the final price for its initial public offering (IPO) at SAR 60 (US$16) per share to trade on the Saudi Exchange (Tadawul).
According to World Grain, the company has successively raised US$266m (SAR999m) in its initial public offering (IPO), which attracted bids worth SAR68.8bn (US$18.35 million) from investors amid a boom in the kingdom’s share offerings.
The milestone follows the company announcing its intention to proceed with the IPO process to trade its shares on the Saudi stock exchange on 18 May.
During the announcement, the company intended to proceed with an initial public offering of 16.65 million shares representing 30% of its share capital on the Saudi Exchange
According to the company, this implies a market capitalization standing at SAR 3.33 billion, equivalent to US$888 million, at listing.
“The impressive demand by participating parties for First Mills’ offer shares is a resounding validation of the company’s investment thesis,” said Abdulla Ababtain, chief executive officer.
He added that the investors appreciate the company’s long-term value creation potential supported by its market leadership, diverse product portfolio, outstanding financial performance, and effective leadership team.
“We are honored by this strong vote of confidence from the diverse group of distinguished institutional investors and look forward to welcoming them into our shareholder base.”
The retail portion of the offering will run from June 6-7, with the final share allotment scheduled for June 12 and a listing to be determined at a later date, according to information on the company’s website.
First Mills is a market leader in the flour and compound feed market, with a wheat milling capacity of 4,200 tonnes per day and a feed mixing capacity of 900 tonnes per day.
The company operates four large-capacity production facilities strategically located across Saudi Arabia, in the Makkah, Al-Qassim, Tabuk, and Eastern regions.
First Mills produces more than 48 flour products and wheat byproducts such as animal feed, bran, and wheat germ. It has a premium flour brand, Aloula, which is marketed in retail outlets across Saudi Arabia.
The IPO is set to be the second biggest in Saudi Arabia this year, after generic drugmaker Jamjoom Pharmaceuticals Factory Co.’s $336 million offering earlier in May.