Al Watania Poultry may sell shares in IPO: Report

Saudi Arabia-based Al Watania, a major producer of poultry products in the Middle East, has invited banks to pitch offers to pick a financial adviser as the company is preparing to sell shares in an initial public offering, Reuters reported, citing three people familiar with the matter.

The company could not be reached for comment.

The Saudi stock market, the Arab world’s largest and most liquid, is expected to open to direct foreign investments in just a few weeks.

Food companies in Saudi Arabia are attracting investors. Private equity firms like TPG Capital and Abraaj have agreed to buy a majority stake in the Kudu fast-food chain. L Capital Asia bought a stake in date company Bateeel. Levant Capital and the Rohatyn Group had appointed Moelis to advise them on the sale of a controlling stake in Al Raya supermarkets.

Qassim-based Al Watania produces one million eggs and 575,000 chickens a day and sell its products in Saudi Arabia and neighboring countries, according to the company’s website.

The company is chaired by Sulaiman al-Rajhi, the co-founder of Al Rajhi bank who controls a 14 percent-stake in the islamic lender.