Saudi Fransi Capital hired as adviser for Olayan’s IPO on Tadawul: report

Saudi-based Olayan Financing Co. has hired Saudi Fransi Capital as financial adviser for the planned initial public offering (IPO) of some of its local assets on the Saudi Stock Exchange (Tadawul), Bloomberg reported, citing sources familiar with the matter.

The financing firm, which runs Olayan Group’s business in the Middle East, may set up a new holding company for 20 of its units, which could be worth as much as $5 billion. Shares in the holding company would then be sold and listed on Tadawul, two unnamed sources told the news agency.

The planned IPO would be the company’s first offering of a Saudi business since 2000.

According to data compiled by Argaam, Olayan Financing manages more than 40 businesses in the Middle East, including the Coca-Cola Bottling Company of Saudi Arabia, the regional Burger King Franchise, Gulf Union Foods Co., Arabian Paper Products Co., and Olayan Real Estate Co. Ltd.

Since the beginning of the year, interest for IPOs in Saudi Arabia and the Middle East has grown. Tadawul, which had a market capitalization of about $400 billion during the first quarter of this year, is considered the most liquid market in the Arab world.