SINGAPORE – Singapore commodity trader Olam Group has outlined plans to list its majority-owned agri-business subsidiary, Olam Agri Holdings, as early as the first half of 2023.
As per the company’s press release, plans are underway to list its majority-owned agri-business subsidiary, Olam Agri Holdings Pte. Ltd. (“OAHPL”), which holds the Olam Agribusiness, as early as H1 2023 (the “Olam Agri IPO”).
The move will result in a primary listing in Singapore and a concurrent one in Saudi Arabia, and a demerger of Olam Agri and Olam Group through the distribution of specie of shares in Olam Agri to shareholders.
If the concurrent listing takes place, the Olam Agri initial public offering (IPO) will be the first dual-listing for a company on these two bourses. It will also be the first-ever listing in Saudi Arabia of a non-Gulf Cooperation Council-incorporated business.
With over 33 years in the agricultural market, Olam Agri is a food and agribusiness company with a global origination and merchandising footprint, processing capabilities, and an understanding of food and agricultural market needs.
Its presence across emerging markets and global capabilities have positioned it to serve and capitalize on meeting the rising demand for food, feed, and fiber, amid a greater global focus on food security.
According to Olam, the decision to target an IPO in the first half of 2023 follows a “thorough” review in terms of maximizing Olam Group’s long-term shareholder value.
“The decision considers the global agri-business trends, rising food security concerns, and Olam Agri Holdings’ demonstrated growth and sound track record of performance,” said Olam.
The plan comes weeks after Olam Group completed the sale of 35.43% of Olam Agri to Saudi Agricultural & Livestock Investment Co for US$1.24 billion, giving the unit an equity valuation of $3.5 billion.
“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,” said Sunny Verghese, co-founder, and chief executive of Olam Group and CEO of Olam Agri.
Verghese further noted that the move will welcome investors in the Middle East, which is a region the group intends to grow further.
However, it was revealed that the IPO may involve a domestic and global sale of shares it holds as well as new Olam Agri shares.
In addition, the company is working with a syndicate of banks for the proposed dual listing and Rothschild & Co Singapore Ltd is acting as an independent financial adviser.
The decision comes at a time when Olam Agri has a consistent performance track record, with operating profit rising at a compound annual growth rate of 40.1 percent over the last three years, said Verghese.
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