SALIC assets rise fivefold; targets Olam IPO: CEO

Sulaiman AlRumaih, CEO of Saudi Agricultural and Livestock Investment Co. (SALIC)

Sulaiman AlRumaih, CEO of Saudi Agricultural and Livestock Investment Co. (SALIC), said the company’s assets have increased roughly fivefold over the past five years, adding that annual returns have grown at about 33%.

In an interview with CNBC Arabia, he said SALIC plans to acquire the remaining 20% stake in Olam Agri Holdings over the next three years, noting that the company already holds a call option to purchase the remaining shares.

AlRumaih said SALIC will focus on integrating its investments with Olam Agri, with potential consolidation of certain assets where necessary in the future, aiming to build a global operating platform capable of handling large volumes of grains and accessing both upstream production sources and downstream consumer markets in key commodities on a commercial scale.

He said Olam Agri’s performance since the initial investment in 2022 has significantly outperformed the original investment case, supported by steadily improving financial results, along with rising volumes and stronger profitability.

He also highlighted the potential IPO of Olam Agri on the Saudi stock market or international exchanges, describing it as a medium-term objective for SALIC. He added that the company is largely IPO-ready, although timing will depend on a range of market and strategic factors.

He said SALIC’s strategy was designed from the outset to build an integrated commodity value-chain portfolio. The objective is to support food security goals while also generating economic value for the company.

SALIC recently increased its stake in Olam Agri Holdings to 80.01%, in a transaction valued at $1.88 billion, equivalent to around SAR 7 billion, according to Argaam’s data.