#SaudiArabia’s First Mills Seeks $1 Billion Value in IPO - Bloomberg

Saudi Arabia’s First Mills Seeks $1 Billion Value in IPO - Bloomberg

Saudi Arabia’s First Mills Co. is planning an initial public offering on the local stock exchange that could value the company at as much as $1 billion, according to people familiar with the matter.

The firm has appointed SNB Capital, the investment banking arm of the kingdom’s largest lender, as financial adviser on the deal, the people said, asking not to be identified as the information is private.

Saudi Arabia’s Capital Market Authority has approved the sale of a 30% stake in the company, the regulator said on Wednesday, confirming an earlier report from Bloomberg News.

Founded in 2017 during the first phase of a privatization of the country’s flour milling industry, First Mills was acquired by a group of investors including Saudi Arabia’s Almutlaq Group, AlSafi Holding Co., Abunayyan Trading Co. and the United Arab Emirates’ Essa Al-Ghurair Investment. It produces about 850,000 tonnes a year of flour, according to its website.

A representative for First Mills didn’t immediately respond to a request for comment, while a representative for SNB Capital declined to comment.

Saudi Arabia split the government-controlled flour milling industry into four companies and sold them off to the private sector. At least one of the other milling companies is also considering an IPO, the people said.