Olam Group, a Singapore-based food and agri-business giant, said Tuesday it plans to list its group firm Olam Agri Holdings Pte (OAHL) in the domestic bourse in the first half of this year. The group is also planning to list the OAHL shares in Saudi Arabia.
Besides, the group plans to demerge Olam Food Ingredients (OFI) on a sequential basis after the IPO, a disclosure statement posted on the Singapore bourse showed.
The size of Olam Agri Holding IPO will be up to $1 billion, a Bloomberg report said last week, citing people familiar with the matter.
“The company is working towards a primary listing of OAHPL on the mainboard of the SGX-ST and is exploring a possible concurrent listing of OAHPL on the Saudi Arabia Stock Exchange,” noted the disclosure statement.
“The company will be proceeding to seek approval from shareholders for various resolutions relating to the OAHPL IPO and the proposed Olam Agri demerger.”
The Singapore bourse has no objection to the proposed spin-off of the businesses of OFI and Olam Agri, subject to certain conditions such as compliance with its listing requirements, approval of the dilution of interest in OAHPL and the proposed Olam Agri demerger by the shareholders at an EGM to be convened and disclosure of valuation undertaken by KPMG Services Pte.
The company has appointed Rothschild & Co Singapore Limited as its financial adviser for the proposed spin-off listings.
Saudi Agricultural and Livestock Investment Company (SALIC), owned by the Public Investment Fund (PIF), acquired a 35.4% stake in Olam Agri Holdings for $1.2 billion from its parent company Olam Group in March 2022.
At the time, Olam said the deal implied a valuation of $3.5 billion for Olam Agri, one of three operating groups formed in early 2020, as part of the Asian food and agri-business giant‘s re-organization strategy.
Olam Group shares rose 3.9% at 10:44 am GST Tuesday.
