Logo of First Milling Co.
Retail investors will start today, June 6, subscription to about 1.665 million shares of First Milling Co. (First Mills), or 30% of the total offered shares, at SAR 60 each, as set by the book-building process.
The subscription process for the retail tranche will run for two days until June 7.
In March, the Capital Market Authority (CMA) approved the company's request to float 16.65 million shares in an initial public offering (IPO), representing 30% of its SAR 555 million capital (55.5 million shares).
The institutional subscription, which ended last week, was 68.9x oversubscribed.
The IPO of First Mills is the fourth on Tadawul this year, following Morabaha Marina Financing Co. (MMFC) and Mawarid Manpower Co. on May 28 as well as Jamjoom Pharma on May 30.
Last year, the main market witnessed 18 IPOs, namely, East Pipes Integrated Company for Industry, Scientific & Medical Equipment House Co., Elm Co., Al-Dawaa Medical Services Co., Al Masane Al Kobra Mining Co., Nahdi Medical Co., Saudi Home Loans Co., Retal Urban Development Co., Alamar Foods Co., Naqi Water Co., Arabian Drilling Co., Power and Utility Company for Jubail and Yanbu (MARAFIQ), Perfect Presentation for Commercial Services Co. (2P), Americana Restaurants International Plc (Americana Restaurants), Riyadh Cables Group Co., AlSaif Stores for Development & Investment Co.'s (Alsaif Gallery) and Saudi Aramco Base Oil Co. (Luberef), in addition to Alinma Hospitality REIT Fund.
Company’s Profile:
First Mills is a Saudi closed joint stock company established in October 2016. The company headquarters is located in Jeddah Islamic Port, Jeddah, between the seventh and eighth gates next to the General Food Security Authority (GFSA).
The company started its operations in 1972 as a group of wheat mills affiliated with GFSA.
First Mills produces flour, feed and other wheat derivatives products.
In February 2022, the company launched its first retail brand, a premium flour brand that is available in supermarkets across the Kingdom.
The company is one of the largest manufacturers of flour products and flour by-products in terms of production volume and sales, as it had a market share estimated at more than 30% in the flour products market in the Kingdom in 2021.
The mills company sells more than 48 products, mostly flour products, and transports these to all regions of the Kingdom with a presence in four main regions: Makkah (Jeddah Governorate), Qassim Region (Buraydah Governorate), Tabuk Region (Tabuk City) and Eastern Province (Al Ahsa Governorate).
The company's sales are not limited to the areas of its main branches, and it is present in other regions through sales and distribution warehouses belonging to the company or its authorized distributors.
The soon-to-be-listed firm employs 726 staff members, of whom 214 are Saudi nationals, and with a localization rate of up to 30%.
Company Branches:
The company runs four branches – in Jeddah, Buraydah, Tabuk and Al Ahsa – with a total production capacity of about 4,200 tons of flour per day, and a total capacity to mix feed nearly 900 tons of feed per day.
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An Overview of the Company's Factories |
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Jeddah |
Qassim |
Tabuk |
Al Ahsa |
Total |
|
|
Establishment Year |
1979 |
1983 |
1998 |
2014 |
-- |
|
Daily wheat milling capacity (tons) (as of Sept. 30, 2022) |
2100 |
900 |
600 |
600 |
4200 |
|
Daily feed mixing capacity (tons) (as of Sept. 30, 2022) |
300 |
600 |
-- |
-- |
900 |
|
Milling production efficiency in 2021 |
89% |
90% |
77% |
90% |
88% |
|
Annual production in 2021 - animal feed (‘000 tons) |
78.7 |
169.9 |
-- |
-- |
248.6 |
|
Annual production in 2021 - Other products (‘000 tons) |
144.7 |
67.1 |
33.9 |
46.5 |
292.2 |
|
Percentage to gross revenue (2021) |
46% |
32% |
10% |
13% |
100% |
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Company Profile |
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|
Company |
First Milling Co. |
|
Market |
Tadawul (TASI) |
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Core Activities |
The production and storage of high-quality flour and wheat byproducts, such as animal feed, bran, and wheat germ |
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Capital |
SAR 555 mln |
|
Number of Shares |
SAR 55.5 mln |
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Offer Details |
|
|
Issue Percentage |
30% |
|
Price per share |
SAR 60 |
|
Number of Shares Offered to Retail Investors |
1.665 mln |
|
Qualified Subscribers |
Retail investors |
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IPO Minimum Limit for Retail Investors |
10 shares |
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IPO Maximum Size for Retail Investors |
250,000 shares |
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Retail Offer |
June 6-7, 2023 |
|
Final Allocation |
June 12, 2023 |
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Surplus Refunds (if any and without commissions or deductions) |
June 19, 2023 |
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Special Info |
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Financial Advisor, Lead Manager, Book-Runner, and Underwriter |
SNB Capital |
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Selling Shareholders’ Advisor, Underwriter |
GIB Capital |
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Book-Runner and Underwriter |
SNB, Al Rajhi Bank, Alinma Bank |
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Company Shareholders |
||||
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Shareholders |
Pre-IPO |
Post-IPO |
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Number of Shares ( mln shares) |
Ownership% |
Number of Shares (mln shares) |
Ownership% |
|
|
Almutlaq Group |
19.43 |
35 % |
16.65 |
30 % |
Abunayyan Trading |
16.65 |
30 % |
11.66 |
21 % |
|
Al Safi Advanced Investment |
13.88 |
25 % |
6.66 |
12 % |
|
Essa Al-Ghurair Investment |
5.55 |
10 % |
3.89 |
7 % |
|
The Public |
-- |
-- |
16.65 |
30 % |
|
Total |
55.5 |
100% |
55.5 |
100 % |
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