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November 11, 2021

Saudi Arabia’s Almunajem Foods planning IPO

The country’s Capital Market Authority (CMA) has approved the company’s application for the IPO.

Almunajem, one of Saudi Arabia’s largest food firms, plans to proceed with an initial public offering and share listing.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The Riyadh-based business imports, markets, distributes and produces frozen, chilled and dry food items and serves around 18,000 outlets in the retail, foodservice and wholesale channels. It has some 700 SKUs and also operates a supply chain and logistics network across the Kingdom.

The country’s Capital Market Authority (CMA) has approved the company’s application for the IPO of 18 million ordinary shares, which represents 30% of its share capital at it seeks to list on the Saudi Stock Exchange or Tadawal.

Banking group HSBC has been appointed as financial advisor, bookrunner, lead manager and underwriter.

Thamer Bin Abdulaziz Abanumay, Almunajem Foods’ CEO, told the TradeArabia news service: “Almunajem Foods has witnessed tremendous transformation and growth over the last few decades to emerge as one of the largest food companies currently operating in Saudi.”

He added: “We are confident in our outlook on the food sector and are well placed operationally to capture greater market share. The IPO will see us further institutionalise from a governance and sustainability perspective and allow us to share our story and success with our partners and investors.”

Almunajem’s revenue last year exceeded SAR2.5bn (US$677m), an increase of 4.9% from 2019.

In April, it expanded a long-standing collaboration agreement with Seara, a subsidiary of Brazil-based meat giant JBS, to meet increased demand from foodservice clients for poultry products.

 

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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