Riyadh – Mubasher: First Milling Company (First Mills) decided to proceed with the initial public offering (IPO) to list 16.65 million ordinary shares on the Main Market of the Saudi Exchange (Tadawul).

The IPO is expected to comprise a sale of existing shares and result in a free float of 30%, according to a press release.

The final price at which all subscribers in the IPO can purchase shares will be determined at the end of a book-building period. Furthermore, the company appointed SNB Capital Company as the financial advisor, lead manager, and bookrunner for the offering process, while SNB Capital Company and GIB Capital have been named as the underwriters.

It is worth noting that Tadawul approved First Mills’ application for the listing on 14 February this year, while the Capital Market Authority (CMA) later gave its nod in March.

The firm has a daily wheat milling capacity of 4,200 tonnes and a feed mixing capacity of 900 tonnes.

First Mills’ CEO, Abdullah Ababtain, 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.”

Ababtain added: “Throughout our history, we have been deeply committed to delivering the highest quality flour, feed, and bran products to our B2B and other customers.”

The CEO noted: “We will also continue to invest in our people, infrastructure, and technology to ensure that we are well-positioned to meet the evolving needs of our customers and to stay ahead of industry trends and emerging technologies.”

In fiscal year (FY) 2021, the firm posted solid financial results with sales of SAR 801 million and net income of SAR 198 million representing three-year compound annual growth rate (CAGR) of 11.5% and 25.6%, respectively.

In the first nine months (9M) of 2022, First Mills achieved sales of SAR 687 million while its net income reached SAR 197 million.