Poultry producer Entaj to sell 30% stake in Riyadh IPO
The Saudi Arabian company plans to sell 9 million shares
30 January 2025
2 minute read
By: Arabian Company for Agricultural and Industrial Investment, also known as Entaj, intends to offer investors shares through an IPO in Riyadh, it said on Thursday, the second firm in Saudi Arabia to announce flotation plans this year, reported Reuters.
The poultry producer plans to sell 9 million shares, equal to a 30% stake in the company, and list on Saudi Arabia's main market, it said in a statement, without providing a timeline for the listing.
Established in 2004, Entaj operates through more than 26 owned and rented broiler farms and has a production capacity of 185 million birds annually, it said.
"This IPO aligns with our commitment to support the Kingdom's food security agenda, and it will allow us to invest further in our infrastructure and workforce to drive sustainable growth," Vice Chairman Ziyad Al Sheikh said in the statement.
Saudi Arabia has been investing in areas including supply chain capabilities and food security under its economic transformation plan, Vision 2030, which aims to diversify the economy away from oil.
As part of the efforts, it is also trying to deepen capital markets and several firms involved in food production listed last year, including milling companies Arabian Mills and Fourth Milling Co.
The offering's net proceeds will be distributed to the selling shareholders, Entaj said without naming them.
The firm has appointed SNB Capital as the lead manager, financial adviser, book runner and underwriter for the IPO.
