Skip to content Skip to Search
Skip navigation

Saudi’s first privatised mill to offer 30% stake in IPO

Nature, Outdoors, Plant Reuters/Viacheslav Musiienko
First Milling Company's market share stood at 33.8 percent in 2021

First Milling Company, the first mill to be privatised in Saudi Arabia, is planning to launch an initial public offering (IPO) on the Saudi Exchange (Tadawul).

The company will offload 16.65 million shares, resulting in a free float of 30 percent of the flour milling company’s share capital, it said in an IPO document.

The final price of the offering will be determined at the end of a book-building period. No dates were given when the book-building process will begin.

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 document said the company’s market share stood at 33.8 percent in 2021.

“We have a clear and focused strategy that will allow us to boost our market share and capture the strong potential growth in the market. 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,” said CEO Abdullah Ababtain.

SNB Capital Company was named the financial advisor, lead manager, and bookrunner. SNB Capital and GIB Capital were named the underwriters.

First Mills’s total sales reached SAR 801 million ($213.60 million) in 2021, as the three-year compound annual growth rate hit 11.5 percent.

In the first nine months of 2022, the company achieved sales of SAR 687 million. Gross profit reached SAR 310 million and net income reached SAR 197 million during the period.

First Mills 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

Flooding in Dubai affected many people's homes. Emaar has promised .free repairs for its residents, and an upgraded sewerage system is planned

Emaar promises free repairs as Dubai launches sewerage system

Emaar Properties is offering free repairs to residents whose homes were damaged during this week’s extreme flooding, as Dubai also announced an AED80 billion ($22 billion) sewerage system. The developer announced on Friday that it would repair all homes in its communities affected by the historic levels of rain, “at no cost to residents”. Emaar’s […]

A customer paying with a credit card inside the Black Friday Market in Beirut. Lebanon wants more people to move away from cash

Lebanon launches plan to promote use of bank cards

Lebanese central bank Banque du Liban announced a new agreement on Thursday that it hopes will result in a rebound in the use of bank cards. As part of the agreement, Mastercard and Visa will lower card fees on transactions, particularly for people with bank accounts based outside Lebanon. In a press release, the bank […]

Construction work in Kuwait. Nurseries, schools and shops are being built for the new residential district of Al Metlaa

Kuwait signs $140m contracts for Al Metlaa development

Kuwait’s Public Authority for Housing Welfare (PAHW) has signed two contracts worth KD42 million ($140 million) to construct public buildings in Al Metlaa, a new residential district north of Kuwait City. Nurseries, stores, schools and shops will be included, state news agency Kuna reported. Electricity connections have been provided for 109 buildings in the district, […]

Iraq gas oil

Iraq to auction 30 oil and gas projects this month

Iraq will auction 30 new oil and gas projects in two licensing rounds before the end of April. The bidding round will be held on April 27, Reuters reported, citing an oil ministry statement. Last October Iraq passed a long-awaited oil and gas law, which will help the country attract more international investments into the hydrocarbon industry and boost government revenues.  Ali Metwally, an […]