First Milling Company Announcement of Final Offer Price
Jeddah, Saudi Arabia – 30 May 2023 – Following the announcement on 18 May 2023 by First Milling Company (the “Company”, or “First Mills”), a market-leading Saudi milling company, of the Offer price range, the Company along with financial advisor SNB Capital, announced today the successful completion of the Participating Parties book-building period in compliance with the guidelines of the Capital Market Authority (“CMA”) and the determination of the final offer price (the “Final Offer Price”) for the Initial Public Offering (the “IPO” or the “Offering”) at SAR 60 per share, implying a market capitalization of SAR 3,330 million (USD 888 million) .
The book-building process generated an order book of SAR 68,818 million (USD 18,351 million)1 and resulted in a subscription coverage of 68.9 the total offered shares.
Eng. Abdullah Ababtain, Chief Executive Officer of First Milling Company, 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.
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.”
Confirmation of Offer Details
• The Final Offer Price for the Offering has been set at SAR 60 per share, implying a market capitalization at listing of SAR 3,330 million (USD 888 million).
• The total Offering size is SAR 999 million (USD 266 million).
• Once listed, the Company is expected to have a free float of 30% of the entire issued share capital of the Company.
• The Offering is comprised of 16,650,000 existing ordinary shares of the Company to be sold by the current shareholders (the “Offer Shares”). 100% of the Offer Shares have been provisionally allocated to the Participating Parties that took part in the book-building process (“Participating Parties”). This may be reduced to 14,985,000 Offer Shares (representing 90% of the total Offer Shares) depending on the level of demand by Individual Investors (as defined below). The final number of Offer Shares allocated to the Participating Parties will be clawed-back accordingly based on subscriptions from Individual Investors.
• Saudi Arabian nationals, foreign residents in the Kingdom of Saudi Arabia and GCC nationals in each case who has a bank account with a Receiving Agent and has the right to open an investment account with a capital market institution (“Individual Investors”) will be able to subscribe for shares in the retail offering from 6 to 7 June 2023G at 5pm KSA time at the Final Offer Price of SAR 60 per Offer Share through the appointed receiving agents which are Saudi National Bank (SNB), Alinma Bank, and Al Rajhi Bank (collectively, the “Receiving Agents”).
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