ARASCO in final stages of filing Entaj IPO on Tadawul: CEO

Ziyad Al-Sheikh, CEO, Arab Agricultural Services Co. (ARASCO)

Arab Agricultural Services Co. (ARASCO) seeks to float ARASCO Foods (Entaj) on Tadawul's main market, as it has reached the final stages of submitting the offering file during the current year, said CEO Ziyad Al-Sheikh.

In an interview with Argaam on the sidelines of the Middle East Poultry Exhibition, the CEO indicated that ARASCO began working intensively on Entaj IPO since last year, expecting the offering to take place by the end of the year or early next year, pending approval of the Capital Market Authority and Tadawul.

For more exclusive interviews 

He indicated that the company's investment in the poultry sector began in 2004, adding production capacity has reached up to 600,000 birds per day.

The company aims to expand and become a major player in the Saudi poultry sector, he stated.

Saudi Arabia has reached very advanced levels of self-sufficiency in poultry, with the percentage exceeding 65%, said Al-Sheikh, adding that the company plays a key role in meeting demand.

He expected the rate of self-sufficiency in poultry production in Saudi Arabia to reach 90%, thanks to the investments of ARASCO and other players.

Meanwhile, the main challenges are fluctuations in feed production inputs, as the past period was considered difficult worldwide in terms of importing grains.

Fluctuations in global grain prices and logistical challenges are another major hurdle, Al-Sheikh stated.

The private and public sectors have overcome the supply side challenges during the COVID pandemic, the CEO said. Additionally, consumers faced no disruptions in access to local products.

The poultry industry's input production chain remained unaffected, Al-Sheikh said, highlighting the resilience of existing infrastructure, thanks to the private sector investments, logistical efficiency in grain transportation and investments by SALIC and other companies.