RIYADH: Food and agribusiness Olam Agri Holdings could become the first global firm to list on the Saudi stock market the company has announced as it ponders a dual posting with the Singapore exchange.
The plan comes after the Saudi Agricultural and Livestock Co. — known as SALIC — bought a minority stake in the firm in December 2022 for S$1.24 billion.
That deal has led the agri company’s parent firm — Olam Group — to consider moving ahead with what would be the first ever listing in Saudi Arabia of a non-Gulf Cooperation Council incorporated business.
Sunny Verghese, co-founder and group CEO of Olam Group and CEO of Olam Agri, said: “With the completion of the minority stake sale and strategic partnership with SALIC, Olam Agri is positioned to grow as a result of the demand for food, feed and fiber across end-consumption growth markets.
“We are exploring a dual-listing in Singapore and Saudi Arabia – which would be the first of its kind – to tap into our strong Singapore and global shareholder base whilst welcoming investors in the Middle East, a region we intend to grow further.”
In a statement, the company said it has chosen Singapore as its primary listing venue given the strong investor base for food and agri-business companies in the country, as well as the continued long-term support of its shareholders.
The additional listing in Saudi Arabia is being considered given the importance of food security in the Gulf region, the large incremental investor base that would be able to participate in the initial public offering, and the new strategic partnership with SALIC, which will further enhance Olam Agri’s activities in the Gulf region.
The company is looking to move ahead with the IPO in the first half of 2023.
