Arabian Company for Agricultural and Industrial Development will sell 30% of its shares in an IPO on Tadawul

BY THE ARAB TODAY Jan 31, 2025

Arabian Company for Agricultural and Industrial Development will sell 30% of its shares in an IPO on Tadawul
Arabian Company for Agricultural and Industrial Development will sell 30% of its shares in an IPO on Tadawul

Arabian Company for Agricultural and Industrial Development will sell 30% of its shares in an IPO on Tadawul

Arabian Company for Agricultural and Industrial Development (Entaj), a poultry company based in Saudi Arabia, said it plans to launch an initial public offering (IPO) on the Saudi Exchange (Tadawul).

Entaj IPO

Entaj has received approval from the Saudi Capital Market Authority (CMA) to list 30% of its shares, which is 9 million shares. This was announced in a filing on Thursday.

The company got conditional approval from Tadawul to list on the main market in September last year. The price of the shares will be announced after the institutional book-building period ends.

The money raised from the IPO will go to the selling shareholders, but the company will not receive any of it.

SNB Capital is managing the process, acting as financial advisor, bookrunner, and underwriter. Retail investors can buy shares through several banks and investment firms, including SNB Capital, SAB Invest, Al Rajhi Capital, and others.

Important quote

“This IPO supports our goal of improving food security in Saudi Arabia, and it will help us invest more in our infrastructure and workforce to grow sustainably,” said Ziyad Al Sheikh, Vice Chairman of Entaj.

Offer details

Tranche A will include investment funds, foreign investors, and some others under swap agreements. 100% of the shares will be set aside for this group, with final allocations made after the subscription period for individual investors.

Tranche B will focus on individual investors in Saudi Arabia, GCC residents, and foreigners living in Saudi Arabia who have active investment accounts with the receiving agents. A maximum of 10% of the shares will be given to individual investors.

Company background

Entaj is a major poultry producer in Saudi Arabia, owned by the Arabian Agricultural Services Company (ARASCO). It produces 185 million birds a year and holds a 7.6% share of the fresh poultry market in the country. Over the past three years, its revenue has grown by 23% annually, driven by high demand for locally sourced poultry.

Published: 31th January 2025

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