JEDDAH, SAUDI ARABIA — First Milling Co. set its final offer price at $16 per share for its initial public offering after receiving $18.35 million in institutional orders.

The IPO will raise $266.4 million for selling shareholders, valuing the company at $888 million. Orders from retail buyers will be taken from June 6-7.  

“The impressive demand by participating parties for First Mills’ offer shares is a resounding validation of the company’s investment thesis,” said Abdulla Ababtain, chief executive officer. “They appreciate the company’s long-term value creation potential supported by its market leadership, diverse product portfolio, outstanding financial performance, and effective leadership team. We are honored by this strong vote of confidence from the diverse group of distinguished institutional investors and look forward to welcoming them into our shareholder base.”

The IPO is set to be the second biggest in Saudi Arabia this year, after generic drugmaker Jamjoom Pharmaceuticals Factory Co.’s $336 million offering, Bloomberg said.

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.