JEDDAH, SAUDI ARABIA — First Milling Co. is planning an initial public offering and listing of its ordinary shares on the main market of the Saudi Exchange.
The company was approved for an IPO of 16.65 million ordinary shares, representing 30% of the company’s share capital. The final price at which all subscribers in the offering will purchase shares will be determined at the end of the book-building period.
First Mills produces more than 48 flour products and wheat byproducts such as animal feed, bran and wheat germ. It has a premium flour brand, Aloula, which is marketed in retail outlets across Saudi Arabia.
First Mills is a market leader in the flour and compound feed market, with a wheat milling capacity of 4,200 tonnes per day and a feed mixing capacity of 900 tonnes per day.
The company operates four large-capacity production facilities strategically located across Saudi Arabia, in the Makkah, Al-Qassim, Tabuk and Eastern regions.
In fiscal year 2021, the company posted sales of SAR 801 million ($213.6 million) and net income of SAR 198 million ($52.8 million) representing three-year compound annual growth rate (CAGR) of 11.5% and 25.6%, respectively. In the first nine months of the 2022 fiscal year, the company reported sales of SAR 687 million ($183.2 million) and net income of SAR 197 million ($52.5 million).
“Our success has been built on a solid foundation of quality, operational excellence, and innovation, further supported by our strategic plant locations and exceptionally talented team,” said Abdullah Ababtain, chief executive officer of First Milling Co. “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.
"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.”
First Mills outlines its strategy and roadmap for maintaining its position and providing long-term value:
- Focusing on improving its distribution operations, expanding sales channels, establishing strategic partnerships with public and private sector players, and developing its bran products in line with the growth of its flour business.
- Building an efficient and distinguished operational framework that enhances value chain integration, increased production capacity, and enhances operational and financial efficiencies.
- Creating products supported by service by diversifying into new product categories that are complementary to its core business, such as utilizing the company’s flour in innovations and manufacturing cake mixes.
- Building the capabilities to achieve its strategy such as enhancing its technical capabilities, research and development, and supply chains, as well as its safety and quality control capabilities.