Two informed sources said that the Saudi Third Mills Company plans to offer its shares in an initial public offering next year, and that it has invited banks to play roles in the offering.
The two sources, who asked not to be named because the matter has not yet been announced, said that the Third Milling Company, which operates flour mills in the Khamis Mushait, Al-Jawf and Jumum regions, has appointed Bank Moels & Co as an advisor.
Neither Third Mills nor Moelis have yet to respond to a request for comment.
One of the sources indicated that the company aims to conduct the offering in the first quarter of 2024.
The third mills are one of several milling companies that have undergone a privatization process in the Kingdom, as the General Organization for Saudi Grains sold them in 2020 to a consortium that includes Al Ghurair Investment, Al Rajhi Holding Group and Masafi for 750 million riyals ($200 million).
Thus, this company will be the second among the milling companies in the Kingdom that seeks to list its shares.
On Tuesday, First Mills announced pricing the offering at the upper end of the indicative price range, amid strong demand.
It set the share price at 60 riyals, which makes the company’s market value at 3.33 billion riyals. The value of the offering is 999 million riyals, and it includes 30% of the activities.
According to Dealogic data, companies in the region raised $21.9 billion through IPOs last year, accounting for more than half of the total in EMEA as a whole.