Saudi Arabian poultry producer Entaj plans to sell 30% stake in Riyadh IPO

Arabian Company for Agricultural and Industrial Investment, also known as Entaj, intends to offer investors shares through an initial public offering (IPO) in Riyadh, it said on Thursday, the second firm in Saudi Arabia to announce flotation plans this year.

The poultry producer plans to sell 9 million shares, equal to a 30 per cent stake in the company, and list on the Saudi Exchange, 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.

“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.

A historic day for Entaj!
We’re thrilled to announce our intention to IPO on the Saudi Exchange. The listing will fuel our further growth as one of the leading poultry brands in Saudi Arabia and help us meet rising consumer demand.#EntajIPO #SaudiArabia #Poultry pic.twitter.com/6ha49uofti

— إنتاج (@EntajFoods) January 30, 2025

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.

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, bookrunner and underwriter for the IPO.

Read: Derayah Financial plans to sell 20% stake in Riyadh IPO