Markets IPO for Saudi poultry producer Entaj off to a flying start By Edmund Bower February 10, 2025, 12:17 PM Eric Lafforgue/Alamy via Reuters A poultry market in Najran, Saudi Arabia. “Poultry, being the cheapest source of protein, always gets the highest attention,” says Entaj CEO Raja Alharbi Oversubscribed on first day Hopes to raise $112m Entaj aiming to expand The initial public offering (IPO) of Saudi Arabian poultry producer Entaj is already oversubscribed, barely 24 hours after the book-building exercise began. Starting the exercise on Sunday and pricing the shares at between SAR46 and SAR50 each, the books were covered “within hours”, CEO Raja Alharbi told AGBI. The IPO could raise more than SAR450 million ($112 million), which Entaj plans to distribute to selling shareholders. Saudi Arabia’s food sector, especially poultry, has grown rapidly over the years, encouraged by a growing population and ambitious government food security targets. More formally known as the Arabian Company for Agricultural and Industrial Investment, Entaj aims to be among the three biggest poultry producers in Saudi Arabia within five years, up from number six now. “Poultry, being the cheapest source of protein, always gets the highest attention,” said Alharbi. “That’s why you see poultry on the rise in investments and the noise it makes in terms of local production.” Entaj is planning to sell 9 million ordinary shares – representing 30 percent of the company – with 90 percent earmarked for institutional investors, and the remainder for individuals. The shares will then trade on the Saudi stock exchange at the end of the month. “The country is really changing, and gaining more and more confidence and attraction from every different sector, not only food and beverage,” Alharbi said. Entaj first floated the idea of an IPO in 2021. The book-building exercise ends on Thursday. “It’s much easier to do business now in Saudi Arabia without having to have a Saudi partner, like in the past and [having to] go through complicated regulations,” he said. Poultry firm Balady to boost Saudi output by 200m chicks a year Saudi developer Umm Al Qura to float on Tadawul Down on the farm, Saudi Arabia has a $9.8bn hole to fill Several high profile IPOs are expected in Saudi Arabia this year, including the budget airline Flynas and car rental company Yelo. Shares of companies which sold in IPOs last year greatly outperformed trading in the wider market. This year, the share prices of the only two companies so far to list on the Saudi exchange – online retailer Nice One and healthcare company Almoosa – have risen by 77 percent and 40 percent respectively. Entaj is the poultry production arm of food and livestock company the Arabian Agricultural Services Company, which recently invested SAR500 million in expanding its capacity. After listing, Entaj will have a dividend strategy that is “balanced yet generous” in the medium term, Alharbi said. SNB Capital is underwriting the IPO.
