Retail subscription to 0.9M shares of Entaj starts on TASI today

Logo of  Arabian Co. for Agricultural & Industrial Investments (Entaj)

Retail investors began subscribing today, Feb. 26, to 900,000 shares of Arabian Company for Agricultural & Industrial Investments (Entaj) at SAR 50 per share, which was determined through the book-building process.

The retail tranche accounts for 10% of the total offering, with the two-day subscription period ending on Feb. 27.

For More IPOs

Last September, the Capital Market Authority (CMA) approved the company's application to register and float nine million shares, representing 30% of the company's capital, on the Main Market (TASI).  

The institutional subscription ended last week, with the offering 208.4x oversubscribed.

Entaj will be the second to list on TASI this year following Derayah Financial’s IPO on Feb. 20.

Tadawul witnessed 14 IPOs last year, following listings by  Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona Co. and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28, Rasan Information Technology Co. on May 29, Almajed for Oud Co. on Sept. 15, Arabian Mills Co. on Sept. 18, Fourth Milling Co. (MC4) on Oct. 2, Tamkeen Human Resources Co. on Nov. 5, United International Holding Co. on Nov. 19,  Almoosa Health Co. on Dec. 23 and Nice One Co. on Dec. 24.

Company Info:

Entaj’s operations date back to 2004 when the food business unit of Arabian Agricultural Services Co. (ARASCO) established “Entaj” brand for the production and marketing of broiler chickens.

The company was officially founded in 2011 as a limited liability company with a capital of SAR 50 million, with ARASCO holding a 99% stake at the time of establishment.

In 2021, ARASCO began transferring its entire poultry business, along with the Entaj brand, to the company. Subsequently, Entaj was converted into a closed joint-stock company in 2024.

The company's current capital is SAR 300 million, divided into 30 million shares, with a nominal value of SAR 10 per share.

Its activities include poultry products, egg trays, red meat products, and cold storage facilities.

The following table outlines the company's products and their revenue share in 2023:

Saudi Arabia is the company's primary geographic market and the largest contributor to its revenue, accounting for 99.1% by the end of 2023. Kuwait and Iraq follow, which are primarily export-oriented markets. The company does not own any assets outside the Kingdom, as shown in the table below:

Company Sales

The company recorded total sales of approximately 72,500 tons of fresh poultry meat in 2023, reflecting a growth rate of 8.3% since 2021.

Whole chickens accounted for 82% of total fresh poultry meat sales by volume, followed by chicken cut-ups at 16.9%, and processed products at 1.2%.

Additionally, the company has entered the frozen poultry meat and table eggs segments due to their growth potential. It aims to capitalize on export opportunities, particularly in the Gulf Cooperation Council (GCC) region.

Geographic Presence

The Riyadh-headquartered company operates three hatcheries, one slaughterhouse, two dry storage facilities, six cold storage facilities, and 11 farms across Saudi Arabia.

In addition, the company sells its products in Kuwait and Iraq through a network of distributors, wholesalers, and retailers.