RIYADH — Tanmiah Food Company (Tanmiah) has listed on the Saudi Exchange following a successful IPO in which its shares achieved an institutional coverage ratio of 9,534% and a retail coverage ratio of 1,170%. The shares were offered to institutions and individuals at SR67, at the top of the range previously set at SR59-67. The sale of 30% of the share capital of Tanmiah, one of the leading food production companies in Saudi Arabia and the Middle East, raised a total of SR402 million ($107.2m) and the transition to a listed company will support the next phase of the company’s growth ambitions. Ahmed Osilan, spokesperson of Tanmiah Food Company, said: “The exceptionally high demand for our shares shown by both institutional and retail investors is a clear vote of confidence in Tanmiah’s strength in the marketplace, our integrated and efficient business model, the resilience of the markets in which we operate, and our plans for the future. “The company has demonstrated that it is trusted for its reliability and sustainability in a defensive sector that is highly appealing to investors, with a conservative risk profile together with an appetite for solid growth. Gratitude and appreciation are, as always, extended to the Capital Market Authority and the Saudi Exchange for their invaluable support and guidance through this success story of Tanmiah’s IPO.” Tanmiah has increased its local sales of fresh chicken by 23% over the past three years from 66.3 million chickens in 2018 to 81.5 million in 2020. Established as the second largest producer of fresh chicken in the retail market in Saudi Arabia, Tanmiah seeks to grow its fresh chicken business in line with the Saudi government’s Food Security plans, and the national production target of 80% of local poultry demand produced domestically within the next five years. Ahmed Osilan continued: “With strong support for our sector from the Saudi government, together with growing economies of scale as we expand combined with our focus on achieving business efficiencies, we are confident of achieving our aim of becoming a leading producer and distributor of food products, including poultry and meat products in the MENA region. “Our focus on quality and food safety will enable us to expand by targeting customers who place a high value on taste, freshness and consistency. We believe our business will continue to offer a compelling opportunity to both local and international investors seeking a meaningful growth story and a solid platform for expansion.” As well as operating 84 farms, six hatcheries, a feed mill and two slaughterhouses, Tanmiah operates three food processing plants and 13 dry and cold storage facilities. Its integrated business model of production, processing and distribution is asset-light, which enables flexibility in expansion. Tanmiah sells its products primarily in Saudi Arabia as well as the UAE, Bahrain, Lebanon, Oman, Jordan, and Kuwait through a network of distributors, wholesalers and retailers. The company serves leading supermarkets including Panda, Othaim and LuLu as well as hotels and restaurants including Burger King, McDonalds, Pizza Hut, and Subway, as well as selling its products directly to consumers online. — SG