Dubai: Another Saudi entity is going public, with First Milling Co. confirming plans to float 30 per cent of its shares. The pricing of the offer will be confirmed post the book-building.
At a time when the Saudi retail and consumer space is on an upbeat trajectory, First Milling believes now is a good time to test out its strengths with investors. The announcement comes the same week as Jamjoom Pharma generated a heavy pull for its IPO subscription.
The 30 per cent stake float equates to 16.65 million shares. A maximum of 1.665 million shares are to be allocated to individual investors.
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.
Apart from its premium flour brand, ‘Aloula’, First Milling’s range extends to nearly 50 products, including those meant for B2B clients.
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.
In 2021, the company's financials had sales of SR801 million and which generated a net income of SR198 million. This worked out to a three-year CAGR of 11.5 per cent and 25.6 per cent, respectively. In the first nine months of 2022, First Milling's sales were at SR687 million and feeding into a net income of SR197 million.