- Saudi Arabia's First Mills is gearing up to debut on the local stock exchange, with a potential valuation of up to $1 billion. The kingdom's largest lender, SNB Capital, is on board as financial adviser for the offering, which has been given the thumbs up by the Capital Market Authority. With a 30% stake up for grabs, investors could soon be cashing in on the company's success.
In 2017, First Mills was established during the initial stage of the privatization of the flour milling industry in the country. Subsequently, it was purchased by a consortium of investors, including Almutlaq Group from Saudi Arabia, AlSafi Holding Co., Abunayyan Trading Co., and Essa Al Ghurair Investment from the UAE. It produces around 850,000 tonnes of flour every year.
Why it matters
Saudi Arabia has divided the government-run flour milling industry into four separate companies and sold them to the private sector. It is reported that one of the other milling firms is looking into the possibility of going public through an initial public offering (IPO).