Saudi coffee chain Barn’s plans IPO on Tadawul

• 150 more stores planned by 2030
• Expansion across Middle East
• Process with regulator ongoing

Barn’s, a homegrown Saudi coffee chain, is planning an initial public offering (IPO) on the Tadawul stock exchange, with an aim to generate funds to finance Middle East expansion.

It is working with Saudi regulator Capital Market Authority to meet the IPO criteria and appoint bankers for the potential offering, Bloomberg reported, citing CEO Mohammed Alzain.

Saudi IPOs have attracted considerable investor interest this year. Three have come to market so far: Derayah Financial, Entaj and Umm al Qura, raising more than $1 billion between them. 

Each company’s shares rose the maximum 30 percent allowed on the first day of trading.

Several more Saudi companies have secured regulatory approval to float shares, including low-cost carrier Flynas, gym chain operator Sports Club and hospital operator Specialized Medical.

• Rising prices open door for Saudi Arabia to lead coffee market
• Special purpose companies proposed to boost Saudi IPOs
• Global stock market dive likely to delay Gulf IPOs

Barn’s aims to expand its network to 1,000 stores by 2030 from the current 850, with new locations planned in the UAE, Oman, Kuwait and Morocco, Alzain said. No timeline for the possible IPO was given. 

The Jeddah-based company was founded in 1992 and operates in Saudi Arabia, Bahrain and Egypt.

According to the company’s LinkedIn profile, Al Amjaad Trading & Manufacturing owns Barn’s trademark and has more than 600 branches in the kingdom.

Stocks on Saudi Arabia’s Tadawul have dropped about 4 percent over the last three weeks, compared with losses of more than 6 percent for emerging market peers.