Olam Agri expects to list shares on Tadawul in form of depositary receipts

Logo of Olam Agri Holdings Co.

Olam Agri, an agricultural business unit of Olam Group Ltd, expects to list its shares on the Saudi Exchange (Tadawul) in form of depositary receipts (DRs).

DRs are securities indicating that their owner has the right to hold shares in a foreign company.

In a statement, the company stated that DRs are securities listed for trading on Tadawul, specifically tailored for Saudi investors to be able to access ordinary shares of a foreign listed company.

The firm aims to secure approximately $600-700 million from its dual listing in Singapore and Saudi Arabia. Meanwhile, it targets nearly $300-400 million in secondary proceeds, but this depends on market conditions and other relevant factors.

It is expected that shares on Singapore Exchange (SGX) will be denominated in the Singapore dollar, while trading in the Saudi riyal on Tadawul, the company said.

The final allocation of shares and depository receipts to be listed will be determined at the time of pricing based on demand levels, investor profiles and the book-building process on both SGX and Tadawul.

The dual listing is subject to final approvals to be obtained. The board may decide not to proceed with the offering after taking into consideration the prevailing economic and market conditions as well as other relevant factors.

In January, Olam Group announced plans to float its agricultural business unit for public offering on SGX, with the possibility of a dual listing on Tadawul during the first half of 2023, according to data available with Argaam.

In December 2022, Saudi Agricultural and Livestock Investment Co. (SALIC), a wholly owned subsidiary of the Public Investment Fund (PIF), completed the acquisition of a 35.43% stake in Olam Agri for SAR 4.65 billion.

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