Almunajem Foods Co., one of the largest Saudi food companies, has appointed HSBC Holdings Plc as adviser to manage its initial public offering.
Riyadh-based Almunajem, which specialises in the import and distribution of food in the kingdom, will list a 30 percent stake, representing 18 million shares, according to a statement on Thursday. The announcement confirmed a Bloomberg News report this week on the listing plans.
Thamer Bin Abdulaziz Abanumay, chief executive officer at Almunajem Foods, said: “Saudi F&B sales reached SR221 billion in 2021 and long-term consumer spending is expected to continue to grow at 4.6 percent CAGR until 2024, driven by favourable demographic reforms, population growth and tourism, all part of meeting Vision 2030 targets.
“This was one of the key reasons that today Almunajem Foods decided to proceed with an initial public offering.”
Almunajem supplies foodstuffs to more than 18,000 outlets, including retail, food services, and wholesale channels, according to its website.
Riyadh has been the hottest market for IPOs in the Middle East, though nearby Abu Dhabi and Dubai are catching up. This year, Saudi Arabia saw listings of companies such as ACWA Power International and Saudi Telecom Co.’s internet-services unit.
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