Riyadh – First Milling Company (First Mills) has determined the final price for its initial public offering (IPO) at SAR 60 per share to trade on the Saudi Exchange (Tadawul), according to a press release.

This implies a market capitalisation standing at SAR 3.33 billion, equivalent to $888 million, at listing.

First Mills’ total IPO size is SAR 999 million, which is equivalent to $266 million. Meanwhile, the book-building process generated an order book of SAR 68.81 billion, amounting to $18.35 billion, and resulted in a 68.90 subscription coverage.

Once listed, the firm is expected to have a 30% free float of its entire issued share capital. This builds on the 16.65 million existing ordinary shares included in the IPO which will be sold by the current shareholders.

Individual investors will have a subscription period on 6 and 7 June 2023 at the final IPO price. Trading of First Mills’ shares on the Saudi stock market will commence after all relevant regulatory requirements are satisfied, while the first day of trading will be announced through Tadawul website.

On 18 May, the company announced its intention to proceed with the IPO process to trade its shares on the Saudi stock exchange.

The CEO of First Mills, Abdullah Ababtain, said: "The impressive demand by participating parties for First Mills' offer shares is a resounding validation of the company’s investment thesis. 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.”

Ababtain concluded: “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.”

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