(Bloomberg) -- Tanmiah Food Co., Saudi Arabia's number two poultry producer, has plans to expand its halal segment into new markets after last week's initial public offering.
“We are looking to expand not only locally, but regionally and globally too,” spokesman Ahmed Osilan said in an interview, adding that the company is targeting 1.8 billion Muslims around the world with its expansion.
The Riyadh-based manufacturer and distributor raised 402 million riyals ($107 million) in the IPO. Tanmiah has about an 18% share of the Saudi poultry market.
“Halal food is becoming a key opportunity for a lot of companies, and by 2025 we should be able to be set for that expansion,” Osilan said.
Tanmiah, which operates mostly in Saudi Arabia with branches in parts of the Middle East and Africa, said it hopes to expand to the U.S., Europe, Asia and Latin America, funded by “various financial tools” from both private and government lenders.
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The company focuses mostly on producing fresh and frozen chicken. and is also considering expansion into other products.
Saudi Arabia's stock exchange has been the hottest market for IPOs in the Middle East over the past two years. Tanmiah completed its book-building process for institutional subscriptions with a coverage ratio of 9,534% -- setting the offer price at the top of its range.
Saudi Fransi Capital was the financial adviser, lead manager, book-runner, and underwriter.
Prior to its listing, Tanmiah looked at different strategies including mergers, acquisitions, sellouts and other investments, but found the IPO as the “most sustainable answer,” Osilan said.
The Saudi stock exchange has seen a lot of momentum since the listing of Saudi Aramco, the world's largest energy company, in 2019, he added.
The food distributor, which was able to grow by 20% even during virus-induced lockdowns, said it's targeting a net-zero carbon emission goal in the upcoming years in a sector known to be polluting.
That will come by using waste water to plant 1 million trees in the next five years, and providing 1 billion seeds to consumers to encourage planting, among other initiatives, the company said.
Tanmiah has been a supplier to major fast food chains including McDonald's Corp., Burger King and Subway Restaurants, among other clients in the region.
On Sunday, Tanmiah shares fell 2.80 riyals to 101.
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