Entaj IPO Overview

Riyadh, Saudi Arabia – Arabian Company for Agricultural and Industrial Investment (“Entaj”), a leading poultry brand in the Kingdom of Saudi Arabia, today marks the commencement of its retail investor subscription phase for its highly anticipated initial public offering (IPO). This follows the successful completion of the institutional book-building process, which saw overwhelming demand from participating parties. Eligible Individual investors can now participate in the offering on Sahm Platform

Institutional Offering Results:

• Final Offer Price: SAR 50 per share, at the top of the previously announced range.
• Market Capitalization at Listing: Approximately 1.5 billion (USD 400 million).
• Oversubscription: The institutional offering was oversubscribed by approximately 208.4 times, with a total of SAR 93 billion in orders.
• Subscription Period for Individual Investors: Starting today, Wednesday, 26 February 2025 (27/08/1446H), until 2:00 PM KSA time on Thursday, 27 February 2025 (28/08/1446H).

Related read: TASI IPOs: 91% Win Rate on First Day and the Secrets Behind It

IPO Summary

Key Investment Highlights:

Entaj is a leading poultry producer in Saudi Arabia, offering a wide range of high-quality products, including fresh, frozen, and cut-up chicken, to both retail and food service fulfillment sectors. Established in 2004 under the Arabian Agricultural Services Company (ARASCO), the Entaj brand grew significantly and, after a strategic restructuring in 2021, now operates under the Arabian Company for Agricultural and Industrial Investment.

1. Supportive Macro Environment & Sector Growth Potential
Entaj operates in Saudi Arabia’s thriving poultry sector, supported by a growing population (projected to rise from 33.1M in 2023 to 37.7M by 2028) and increasing consumer spending on food. Fresh poultry value sales are forecast to surge from SAR 18.3B (2023) to SAR 26.7B by 2028, with volume sales reaching 1.22M tonnes.

2. Leading Brand with Expanding Market Share
A top contender in Saudi Arabia’s fresh poultry market, Entaj holds a 7.6% share, competing with larger players like Al-Watania and Alyoum. Its brand reputation—built on quality, innovation, and consumer trust—is rapidly strengthening, supported by recent initiatives to enhance visibility and loyalty.

3. Vertically Integrated Operations & Advanced Capabilities
Entaj’s end-to-end operations feature state-of-the-art biosecure farms, hatcheries, and production facilities, ensuring efficiency and compliance with global standards (Saudi GAP, FSSC 22000, ISO, Halal). Its diverse product range (poultry, red meat, eggs) is distributed via a robust regional network and e-commerce platform.

4. Direct Consumer Access via Multi-Channel Distribution
The company delivers daily to over 4,000 retail outlets—from local baqalas to hypermarkets—with temperature-controlled logistics. As a preferred supplier to hospitality clients, Entaj also offers tailored solutions and is expanding its distribution fleet and regional hubs to penetrate underserved areas.

5. Resilient Financial Performance & Growth Focus
Entaj achieved a 23% revenue CAGR over the past three years, driven by demand for locally sourced poultry (96.6% of revenue). While 2023 growth was constrained by capacity, ongoing expansion investments aim to unlock future scalability and profitability.

6. Experienced Leadership & Strategic Backing
The management team brings decades of cross-industry expertise, supported by parent company ARASCO—a Saudi industry leader—which provides resources and strategic alignment for regional and international growth.

Investor Groups

Tranche (A): Participating Parties
This tranche is reserved for entities eligible to participate in the book-building process, including investment funds, Qualified Foreign Investors, GCC Corporate Investors, and certain foreign investors under swap agreements (collectively referred to as "Participating Parties").

• Provisionally Allocated Shares: 9,000,000 Offer Shares, representing 100% of the total Offer Shares.
• Final Allocation: The final distribution will occur after the Individual Subscriber subscription period ends, with allocations made at the Financial Advisor’s discretion in coordination with the Company. Some Participating Parties may not receive any shares.
• Adjustment for Individual Subscriber Demand: If Individual Subscribers show sufficient demand, the Financial Advisor may reduce the allocation for Participating Parties to 8,100,000 shares, representing 90% of the total.

Tranche (B): Individual Subscribers
This tranche is available to:

• Saudi natural persons, including female divorcees or widows with minor children from a non-Saudi spouse, who may subscribe for their children’s benefit.
• Non-Saudi natural persons residing in the Kingdom, or GCC nationals with an investment account at one of the Receiving Agents.
• Allocation: Up to 900,000 Offer Shares, representing 10% of the total.
• Subscription Restrictions: Subscriptions made in the name of a divorced wife or duplicate subscriptions will be deemed invalid.
• Adjustment for Unsubscribed Shares: If Individual Subscribers do not fully subscribe, the Financial Advisor, in coordination with the Company, may reduce the allocated shares proportionally based on the number of shares subscribed.

Substantial Shareholders of the Company Pre- and Post Offering

Note:

• Direct and Indirect Ownership: ARASCO owns the entire capital of Ocean Line Marine Services Company, which holds 4.90% of the Company’s shares before the Offering. As such, ARASCO indirectly controls the entire capital of the Company before the Offering.

Expected Offering Timetable

Note: The above timetable and dates are approximate. Actual dates will be announced on the websites of Tadawul (www.saudiexchange.sa), the Financial Advisor (www.alahlicapital.com), and the Company (www.entaj.com).

Read the full Prospectus

Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO

Further updates regarding this IPO will be provided as more information becomes available.

- Reporting by Zaid, Sahm News team