Saudi Grains looks to hire advisors for restructuring, IPO

Saudi Grains Organization (SAGO) is looking to hire banks for an advisory role as it goes through restructuring and a possible initial public offering (IPO) on the Saudi Stock Exchange (Tadawul), MEED reported, citing unnamed sources.

The state-run grain silos and flour mills operator, which may be valued at over $1 billion, has contacted regional and local banks to submit proposals, the sources said.

After restructuring is complete next year, the company will either sell stake to an investor or float shares.

SAGO joins other state-controlled entities, such as Saudi Electricity Co. and Saudi Aramco, shifting toward privatization or public offerings.

Saudi Arabia expects a deficit of SAR 326 billion in 2016, which has led to widespread economic reforms.

SAGO owns and operates 12 flour mills and five animal feed production facilities within the kingdom.