Saudi’s First Milling Co. plans to go ahead with an IPO for the sale of 30% of its share capital which roughly amounts to 16.65 Million shares. The dates of the IPO are from 18th May to 7th June. The first price range will be announced on 18th May and the final price will be set on the 31st of May. The firm has appointed SNB Capital as financial adviser on the deal.

First milling uses innovation and technology to produce flour, feed, bran and wheat derivatives. With a roaring market share of 33.8% and a panel of about 50 products, First Milling operates four production units in Jeddah, Qassim, Tabuk, and Al-Ahsa. In 2020, the Raha AlSafi consortium purchased the company, which marked the beginning of several privatizations in the flour milling sector in Saudi Arabia. The transaction amounted to $540 million.

In 2021, the company achieved sales of SR801 million, resulting in a net income of SR198 million. These figures correspond to a three-year Compound Annual Growth Rate (CAGR) of 11.5% and 25.6% for sales and net income, respectively. Moving forward to the first nine months of 2022, First Milling recorded sales of SR687 million, contributing to a net income of SR197 million.

With consumer space being on a trajectory of growth, the company thinks that now is a good time for it to tap into the association of retail investors.