IPO Monitor | Saudi’s Leading Poultry Producer Entaj Launches 30% IPO – Here’s the Background Details

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TASI.SA

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Entaj IPO Overview

The Arabian Company for Agricultural and Industrial Investment (the “Company” or “Entaj”), one of the leading poultry brands in the Kingdom of Saudi Arabia, has announced its intention to proceed with an Initial Public Offering (IPO) and the listing of its ordinary shares on the main market of the Saudi Exchange. 

The Company received approval from the Capital Market Authority (CMA) on 30 September 2024 to register its share capital and proceed with the offering of 9,000,000 ordinary shares (the “Offer Shares”), which represent 30% of the Company’s total issued share capital. The final offering price will be disclosed following the completion of the institutional book-building period. 

It is important to note that the net proceeds from the offering will be allocated to the selling shareholders, and the Company will not receive any part of the net offering proceeds.

Key Details:

  • Offering Details: The offering will consist of 9,000,000 ordinary shares, representing 30% of the Company’s total issued share capital. These shares will be available for subscription by both individual subscribers and participating entities. Depending on retail demand, the number of shares allocated to institutional investors may be reduced to a minimum of 8,100,000 shares, or 90% of the total offering.
  • Listing & Trading: Once the offering and listing formalities are completed, the Offer Shares will be listed and traded on the Main Market of the Saudi Exchange.

Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO


IPO Summary

CategoryDetails
Company NameArabian Company for Agricultural and Industrial Investment (Entaj)
MarketMain Market (TASI)
Core ActivitiesPoultry products, egg trays, red meat products
CapitalSAR 300 million
Total Shares30 million
Par ValueSAR 10 per share
Issue Percentage30%
Number of Offered Shares9 million
Qualified SubscribersParticipating institutions & Retail investors
Total Number of Shares Offered to Retail Investors900,000 shares
Minimum Number of Offer Shares to be Applied for by Individual Investors10 shares
Maximum Number of Offer Shares to be Applied for by Individual Investors250,000 shares
Minimum Number of Offer Shares to be Applied for by Institutional Investors100,000 shares
Maximum Number of Offer Shares to be Applied for by Institutional Investors1.5 million shares

Overview of Entaj:

Entaj is a leading poultry producer in Saudi Arabia, offering a wide range of high-quality products, including fresh, frozen, and cut-up chicken, to both retail and food servicefulfillment sectors. Established in 2004 under the Arabian Agricultural Services Company (ARASCO), the Entaj brand grew significantly and, after a strategic restructuring in 2021, now operates under the Arabian Company for Agricultural and Industrial Investment.

The Company boasts a vertically integrated production process, managing every stage from breeding and hatching to manufacturing and packaging. Entaj has a production capacity of 185 million birds annually, supported by strategically located farms and processing facilities across the Kingdom. This infrastructure enables efficient nationwide distribution and broad market reach.

Currently, Entaj processes 390,000 birds per day, with plans to expand capacity to 600,000 birds daily by December 2024. The company operates with a focus on sustainability, maintaining a 6.4% annual mortality rate. Its dedicated workforce of 1,755 employees ensures consistent product quality and service.

Entaj’s commitment to quality, innovation, and sustainability has solidified its position as a trusted brand in Saudi Arabia’s poultry market, with continuous investments in processing technologies and an expanding distribution network to meet growing consumer demand.


Investor Groups

Tranche (A): Participating Parties
This tranche is reserved for entities eligible to participate in the book-building process, including investment funds, Qualified Foreign Investors, GCC Corporate Investors, and certain foreign investors under swap agreements (collectively referred to as "Participating Parties").

  • Provisionally Allocated Shares: 9,000,000 Offer Shares, representing 100% of the total Offer Shares.
  • Final Allocation: The final distribution will occur after the Individual Subscriber subscription period ends, with allocations made at the Financial Advisor’s discretion in coordination with the Company. Some Participating Parties may not receive any shares.
  • Adjustment for Individual Subscriber Demand: If Individual Subscribers show sufficient demand, the Financial Advisor may reduce the allocation for Participating Parties to 8,100,000 shares, representing 90% of the total.

Tranche (B): Individual Subscribers
This tranche is available to:

  • Saudi natural persons, including female divorcees or widows with minor children from a non-Saudi spouse, who may subscribe for their children’s benefit.
  • Non-Saudi natural persons residing in the Kingdom, or GCC nationals with an investment account at one of the Receiving Agents.
  • Allocation: Up to 900,000 Offer Shares, representing 10% of the total.
  • Subscription Restrictions: Subscriptions made in the name of a divorced wife or duplicate subscriptions will be deemed invalid.
  • Adjustment for Unsubscribed Shares: If Individual Subscribers do not fully subscribe, the Financial Advisor, in coordination with the Company, may reduce the allocated shares proportionally based on the number of shares subscribed.

Substantial Shareholders of the Company Pre- and Post Offering

 Pre-OfferingPost-Offering
ShareholderNumber of Shares Ownership (%) Nominal Value (SAR) Number of Shares Ownership (%) Nominal Value (SAR)
ARASCO28,530,00095.10%285,300,00019,530,00065.10%195,300,000
Total28,530,00095.10%285,300,00019,530,00065.10%195,300,000

Note:

  • Direct and Indirect Ownership: ARASCO owns the entire capital of Ocean Line Marine Services Company, which holds 4.90% of the Company’s shares before the Offering. As such, ARASCO indirectly controls the entire capital of the Company before the Offering.

Expected Offering Timetable

EventDate
Bidding and Book-Building Period for Participating EntitiesFrom Sunday, 10 Sha’ban 1446H (corresponding to 9 February 2025G) until 3:00 p.m. Thursday, 14 Sha’ban 1446H (corresponding to 13 February 2025G)
Deadline for Submission of Subscription Application FormsOn Tuesday, 26 Sha’ban 1446H (corresponding to 25 February 2025G)
Subscription Period for Individual SubscribersFor a period of two days, starting on Wednesday, 27 Sha’ban 1446H (corresponding to 26 February 2025G) until 2:00 p.m. Thursday, 28 Sha’ban 1446H (corresponding to 27 February 2025G)
Deadline for Payment of the Subscription Amount by Participating EntitiesOn Wednesday, 27 Sha’ban 1446H (corresponding to 26 February 2025G)
Deadline for Submission of Subscription Application Forms and Payment of the Subscription Amount by Individual SubscribersOn Thursday, 28 Sha’ban 1446H (corresponding to 27 February 2025G)
Announcement of the Final Allocation of the Offer SharesNo later than Tuesday, 4 Ramadan 1446H (corresponding to 4 March 2025G)
Refund of Excess Subscription Monies (if any)No later than Tuesday, 10 Ramadan 1446H (corresponding to 10 March 2025G)
Expected Commencement Date for Trading the Shares on the ExchangeTrading of the Company’s Shares is expected to commence after the fulfilment of all requirements and the completion of all relevant legal procedures. The commencement of trading will be announced in local newspapers and on Tadawul’s website (www.saudiexchange.sa).

Note: The above timetable and dates are approximate. Actual dates will be announced on the websites of Tadawul (www.saudiexchange.sa), the Financial Advisor (www.alahlicapital.com), and the Company (www.entaj.com).

Read the full Prospectus

Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO

Further updates regarding this IPO will be provided as more information becomes available.

- Reporting by Zaid, Sahm News team

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