May 22, 2023
First Milling Company announces intention to launch IPO on Saudi Exchange
First Milling Company, a prominent milling company in the Kingdom of Saudi Arabia, has revealed plans to initiate an initial public offering (IPO) and list its ordinary shares on the main market of the Saudi Exchange, Tawadul, Zawya reported.
First Mills is a leading Saudi milling company that specialises in producing high-quality flour products and wheat byproducts such as animal feed, bran, and wheat germ.
With a diverse customer base, First Mills offers over 48 products to various clients, including large industrial players, commercial bakeries, restaurants, catering businesses, wholesalers, modern and traditional trade customers, farms, feed distributors, and retail customers. The company holds a strong position in the flour and compound feed market, boasting a daily wheat milling capacity of 4,200 tonnes and a feed mixing capacity of 900 tonnes.
Strategically located across the Kingdom, First Mills operates four large-capacity production facilities in Makkah Region, Al-Qassim Region, Tabuk Region, and the Eastern Region. The company aims to be the preferred partner in the food and feed sectors, providing reliable and sustainable high-quality products to communities and markets in Saudi Arabia. To achieve this, First Mills focuses on strengthening its market position, optimizing operational efficiency, creating superior products, and developing the necessary technical capabilities.
In terms of financial performance, the company delivered solid results in FY 2021, with sales reaching SAR 801 million (~US$213 million; SAR 1 = US$0.27) and net income totalling SAR 198 million (~US$52 million). These figures represent a three-year compound annual growth rate (CAGR) of 11.5% and 25.6%, respectively. In 9M 2022, First Mills achieved sales of SAR 687 million (~US$183 million) and net income of SAR 197 million (~US$52 million).
Eng. Abdullah Ababtain, chief executive officer of First Milling Company, said the upcoming IPO is a significant milestone that solidifies the company's position as a leading player in the Saudi milling sector.
Ababtain said that the company is committed to delivering high-quality products while focusing on innovation, operational excellence, and strategic plant locations. He outlined the company's clear strategy, which includes expanding capacities, enhancing efficiencies, venturing into new product categories, improving distribution channels, and sustaining revenue and profit growth.
Ababtain also stressed the company's dedication to investing in its people, infrastructure, and technology to meet evolving customer needs and stay ahead of industry trends.