Skip to content Skip to Search
Skip navigation

Saudi’s First Milling order book hits over $18bn

Unsplash.com
Egypt is one of the world's biggest wheat importers, buying around five million tonnes of wheat annually from abroad

Saudi Arabia’s First Milling Company has set the final offer price for its initial public offering (IPO) at SAR60 per share, implying a market capitalisation at listing of SAR3.33 billion ($888 million). 

The book-building process generated an order book of SAR68.81 billion ($18.35 billion) and resulted in a subscription coverage of 68.9 times of the total offered shares, the company said in a statement.

First Milling, the first mill privatised in Saudi Arabia, will offload 16.65 million shares, resulting in a free float of 30 percent of the flour milling company’s share capital.

The IPO subscription, which started on May 18, ends on June 7, with the listing date to be determined later on the Saudi Exchange.

First Milling has a daily wheat milling capacity of 4,200 tonnes and a feed mixing capacity of 900 tonnes. It operates four large-capacity production facilities in Makkah, Al Qassim, Tabuk and the Eastern Region.

The company was the first of several flour milling privatisations in Saudi Arabia sold to AlRaha AlSafi Food Company-consortium for $540 million in 2020.

The consortium was led by Saudi Arabian firm Almutlaq Group, including AlSafi Holding Company, Abunayyan Holding and UAE’s Essa Al-Ghurair Investment.

Latest articles

UAE France

Climate transition galvanises ties between UAE and France

Climate transition is becoming a central focus of economic cooperation between the UAE and France as the countries agreed to establish a “Bilateral Climate Investment Platform”. The platform aims to accelerate joint projects and investments in clean energy sectors, with a particular focus on advancing the decarbonisation of industries such as steel, cement and petrochemicals. […]

UAE new cairo

UAE developer to build $2bn project in Egypt’s New Cairo

Egypt’s New Urban Communities Authority and the UAE’s UDC Real Estate Development Company have signed a contract to develop an EGP60 billion ($1.9 billion) urban development project in New Cairo. Named The Crest, the development in the Hadayek Al-Andalus area will be built on a plot spanning 665,000 sq m. It will comprise residential, commercial […]

Baghdad South power plant: Iraq generates 80% of its power using fossil fuels

Iraq plans push on solar and green hydrogen projects

Iraq is planning to build solar plants and its first green hydrogen project as part of a strategy to tackle power shortages and reduce its carbon footprint. The country’s cabinet has approved a proposal to install 12 gigawatts (GW) of solar power by 2030, said a National Investment Commission representative, Rahim Al Jaafari. Projects capable […]

Neom wellness Elanan

Neom announces ‘ultra-modern’ wellness resort

Saudi Arabia’s mega-city Neom has announced plans for another wellness resort on the Gulf of Aqaba.  The new site, Elanan, will be a wellness resort with architecture that uses “ultra-modern design techniques to form intricate sculptures that merge with the surrounding natural beauty,” Neom said on its website. The website shows images of a futuristic-looking […]