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

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.