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Qatar’s largest dairy group ‘Baladna to be public by end of the year’
Posted on Thursday, 17 October 2019 11:03
Baladna, Qatar’s biggest diary company, is planning to squeeze in an initial public offering (IPO) by the end of this month to raise QAR 1.43 billion (USD 391.54 million) in proceeds, Reuters reported, citing a statement from the group.
The business has been weighing a potential stock market flotation for some time, first announcing its aim for a listing in January 2018.
Baladna is now said to be offloading 75.0 per cent of its share capital in an IPO scheduled to start on 27th October 2019 and close on 7th November 2019.
Last week, the group received the green light from the Qatar Financial Markets Authority, with the process due to begin after completion of all legal requirements, the provision of the prospectus and all relevant data prior to the start of the flotation.
Established in 2014, the company is located north of Doha and spreads over a 2.40 million square metre area with a capacity to hold 24,000 cows.
In addition to a factory for milk and the production of dairy and cheeses, Baladna also makes certain types of sweets and desserts such as custard, rice pudding and Muhallabia.
The group currently has 1,500 points of sale, 18,000 cows, over 100 products available to customers and some 1,500 employees.
Baladna, together with Felcra, has a plan to set up Malaysia’s largest dairy farm in the next two years with expectations to produce 50.00 million litres of milk by 2021.
According to Zephyr, the M&A database published by Bureau van Dijk, the last IPO of a Qatar-based company took place in 2018 and was the only such listing announced in the entire year.
This deal involves Qatalum Aluminium, which raised QAR 2.76 billion on the Qatar Stock Exchange in December 2018.
In total, just eight Qatar-based companies have announced or completed plans for IPOs over the last ten years, the biggest involving Vodafone Qatar raising QAR 3.47 billion in July 2009.
© Zephus Ltd