Saudi poultry producer Entaj is going public in Riyadh, with the hope of tapping opportunities in its growing demand for… fresh chicken.
The company plans to offer 9 million shares (30% of its issued capital) in the IPO. SNB Capital is managing the deal, where 10% will be set aside for Saudi and GCC retail investors.
Founded in 2004, Entaj, the operating name for the Arabian Company for Agricultural and Industrial Investment, churns out 185 million birds annually — good for 7.6% of Saudi Arabia’s fresh poultry market.
Why now?
Entaj said in its IPO announcement that it is betting on vertical integration, tech transformation, and new product launches to scale up in an industry that’s already seeing major tailwinds.
Saudi Arabia’s poultry sector is in a growth phase, with demand climbing thanks to government-backed initiatives and changing consumer habits.
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The market, currently worth $19 billion, is projected to hit $26.6 billion by 2033, with an annual growth rate of 3.4%.
Broiler meat dominates, making up 67% of the market, as consumers opt for more ready-to-eat and ready-to-cook poultry options.
Entaj said that it expects its sales to go from $4.88 billion in 2023 to $7.11 billion in 2028 on the back of increased consumer spending in Saudi Arabia, particularly on food and beverage.
It’s a busy field
Entaj won’t be the first poultry player on the Saudi Exchange. Balady Poultry ($620 million market cap) and Tanmiah Food ($650 million market cap) are already in the game.
But if it wants to go big, it’ll have to contend with giants like Almarai ($15.7 billion market cap), which operates the regionally popular Alyoum brand, and Alwatania, the largest poultry producer in the Middle East.
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It was reported last month that Alwatania’s owners were exploring a sale, in a transaction that could fetch them close to $532 million.
With poultry demand soaring and Saudi’s IPO pipeline still hot, Entaj is looking to cash in now. But investors should be watching closely to see if it can compete with the bigger birds in the coop.
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
