Olam Group has announced plans to list its majority-owned agri-business subsidiary – Olam Agri in Singapore and Saudi Arabia bourses.
On December 23, 2022, the group announced a strategic partnership between Olam Agri and The Saudi Agricultural and Livestock Company (SALIC) through the sale of a substantial minority stake in OAHPL for $1.24 billion (SALIC Transaction).
Following the SALIC transaction, the group is seeking a primary listing for OAHPL on the mainboard of the Singapore Exchange (SGX), while exploring a concurrent listing on the Saudi Exchange, subject to market conditions.
“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 fibre across end-consumption growth markets,” said Sunny Verghese, co-founder and group CEO of Olam and CEO of Olam Agri in a statement.
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“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,” he said.
He stated that the planned listings would allow Olam Agri and ofi to capitalise on the key trends in their respective sectors and strengthen their respective balance sheets.
He added that it will help the organisation improve access to capital markets, broaden their shareholder base, and allow them to be better understood and valued as standalone entities with very different business propositions.
According to the statement, if the concurrent listing takes place, the Olam Agri IPO would be the first dual-listing for a company on these two bourses and the first-ever listing in Saudi Arabia of a non-Gulf Cooperation Council-incorporated business.
The decision to target an IPO for OAHPL as early as H1 2023 follows a thorough review in relation to maximising Olam Group’s long-term shareholder value.
The decision also considers the global agri-business trends, rising food security concerns and OAHPL’s demonstrated growth and sound track record of performance.
Olam Agri, a food and agribusiness with over 33 years’ experience in the industry, has presence across emerging markets and global capabilities.
