Retail subscription to Tanmiah Food’s IPO starts today

Logo of Tanmiah Food Co.

The retail tranche of Tanmiah Food Co.’s initial public offering (IPO) will commence today, July 27, which will comprise 600,000 shares. The retail subscription period will last for one day only.

The offer price was set at SAR 67/share, after completing the book-building process for institutions, as subscription coverage reached 9,534%.

On June 8, the Capital Market Authority (CMA) approved the offering of 30% stake, or six million shares, of the company's 20 million shares.

Tanmiah Food Co.'s IPO is the third on Tadawul in 2021, following the IPOs of Alkhorayef Water & Power Technologies Co. and Theeb Rent a Car Co.

The Saudi market saw three IPOs in 2020, namely Dr. Sulaiman Al-Habib Medical Services Group in February, Amlak International for Real Estate Finance Co. in July, and BinDawood Holding in October.

Company Info:

Tanmiah Food was established as a closed joint stock company in March 2019 in Riyadh. The company's capital currently stands at SAR 200 million.

The company's main activities are represented in the production and sale of fresh poultry, processing and sale of poultry and meat products, production and sale of animal feed, broiler chicks, hatching broiler eggs, animal health products, and other integrated projects to produce poultry, along with other poultry equipment.

The company manages 84 farms, including 83 leased ones, and six places for hatching eggs, as well as a feed plant in Saudi Arabia, two slaughterhouses, three food processing plans, and 13 dry and chilled storage facilities in Saudi Arabia, Bahrain and the UAE.

The group sells its products in seven countries through a network of distributors, wholesale and retail sale traders.

Details of Affiliates
Company	Country	Capital (SAR mln)	Direct Ownership	Indirect Ownership
Agricultural Development Co.	Saudi Arabia	20.00	100%	--
Desert Hills Veterinary Services Co. Ltd.	Saudi Arabia	1.00	100%	--
Supreme Foods Processing Co.	Saudi Arabia	8.63	100%	--
Perfect Foods Factory	UAE	20.76	4%	96%
Tanmiah International	UAE	3.11	4%	96%
Supreme Foods Co. Ltd.	Bahrain	0.025	--	100%

Company Profile
Company	Tanmiah Food Co.
Market	Saudi Exchange (Tadawul)
Core Activities	- Production and sale of fresh poultry - Processing of poultry and other meat products - Producing and selling animal feed, broiler chicks, hatching eggs, and animal health products. The company also implements comprehensive poultry and greenhouse projects.
Capital	SAR 200 mln

IPO Summary
Issue Percentage (%)	30%
Number of Shares Offered for Retail Investors	600,000 shares, or 10% of total offered shares, amounting to six million shares.
Issue Price	SAR 67/share
Qualified Subscribers	Retail investors - The tranche comprises Saudi nationals, including Saudi female divorcees or widows with minor children from a non-Saudi father. It also includes any non-Saudi natural person, who is a resident in the Kingdom and any GCC national, who holds a bank account with one of the receiving entities.
IPO Minimum Size for Retail Investors	10 shares
IPO Maximum Size for Retail Investors	250,000 shares
Retail Offering Period (One Day)	July 27, 2021
Final Allocation of IPO Shares	Aug. 2, 2021
Surplus Refund	Aug. 4, 2021

Additional Information
Financial Advisor, Lead Manager, Underwriter and Bookrunner	Saudi Fransi Capital
Receiving Banks	Banque Saudi Fransi

Al-Dabbagh Group Holding will be the largest shareholder in the company after the IPO, with 70% stake.

Company’s Shareholders
Shareholders	Before IPO		After IPO
Shareholders	Number of Shares (mln)	Ownership	Number of Shares (mln)	Ownership
Al-Dabbagh Group Holding	19.20	96%	14.00	70%
Tanmiah Commercial Group	0.80	4%	--	--
Public	--	--	6.00	30%
Total	20.00	100%	20.00	100%

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