Global food and agribusiness company Olam Group has announced plans to list its majority-owned agribusiness subsidiary Olam Agri Holdings on the Singapore Exchange in the first half of this year.
The company also planned to explore a concurrent listing on the Saudi Exchange, if market conditions were positive, Olam Group said on 10 January.
Olam Agri specialises in the processing and trading of animal feed, grains, oilseeds, rice and other products and is active in more than 30 countries.
Olam Group said the decision to target a primary listing for Olam Agri on the Singapore Exchange followed a review in relation to maximising the group’s long-term shareholder value and also took into consideration global agri-business trends and rising food security concerns.
“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,” Sunny Verghese, co-founder and Group CEO of Olam Group and CEO of Olam Agri, said.
In December, Olam Agri announced that the Saudi Agricultural and Livestock Investment Company (SALIC), a wholly owned subsidiary of the Public Investment Fund of the Kingdom of Saudi Arabia, had acquired a substantial minority stake in Olam Agri for US$1.24bn.
Completed on 23 December, the transaction – first announced on 25 March last year – valued Olam Agri at an equity valuation of US$3.5bn.
Following the transaction, Olam Group said it would continue to hold a majority stake of 64.57% in Olam Agri.
In addition, Olam Group said SALIC and Olam Agri had entered into a strategic supply and cooperation agreement, which would accelerate Olam Agri’s access into Middle East markets.
“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,” Verghese said.
SALIC, which is wholly owned by the Public Investment Fund of the Kingdom of Saudi Arabia (KSA), said the partnership with Olam Agri would help progress its aim to deliver food security in Saudi Arabia.
Established in 2009, SALIC aims to achieve food security for the Kingdom of Saudi Arabia through domestic and international investments.
Meanwhile, Olam Group said there would be no change to its plans to list Olam Food Ingredients on the premium segment of the London Stock Exchange, with a concurrent listing in Singapore, subject to market conditions.