September 14, 2021

Tanmiah’s Successful IPO Prepares Company For Further Growth

Tanmiah listed on the Saudi Exchange on August 5, 2021, following a successful and heavily oversubscribed IPO.
The transition to a listed company supports the next phase of the growth ambitions of our company, which is already one of the leading food production companies in Saudi Arabia and the Middle East.
The shares achieved an institutional coverage ratio of 9,534% and a retail coverage ratio of 1,170%. They were offered to investors at SAR 67, at the top of the range previously set at SAR 59-67.
The exceptionally high demand for the shares was a clear vote of confidence in Tanmiah’s strength in the marketplace, our integrated and efficient business model, the resilience of the markets in which we operate, and our plans for the future.
Following the listing, Tanmiah announced that our revenues in the first half of 2021 grew by 27.6% to reach of SR734. 9 million ($195.7 million). We plan a rapid ramp-up in spending on production, distribution and brand assets.
Tanmiah increased its local sales of fresh chicken by 23% from 66.3 million chickens in 2018 to 81.5 million in 2020. Established as the second largest producer of fresh chicken in the retail market in Saudi Arabia, Tanmiah seeks to grow our fresh chicken business in line with the Saudi government’s Food Security plans, and the national production target of 80% of local poultry demand produced domestically within the next five years.
The company has demonstrated that we are trusted for our reliability and sustainability in a defensive sector that is highly appealing to investors, with a conservative risk profile together with an appetite for solid growth.
The sale of 30% of the share capital of Tanmiah raised a total of SAR 402 million (USD 107.2m).
With strong support for the food sector from the Saudi government, together with growing economies of scale as we expand, we are confident of achieving our aim of becoming a leading producer and distributor of food products, including poultry and meat products in the MENA region.
Our focus on quality and food safety will enable us to expand by targeting customers who place a high value on taste, freshness and consistency. We believe our business will continue to offer a compelling opportunity to both local and international investors seeking a meaningful growth story and a solid platform for expansion.
We sell our products primarily in Saudi Arabia as well as the UAE, Bahrain, Lebanon, Oman, Jordan, and Kuwait through a network of distributors, wholesalers and retailers. We serve leading supermarkets including Panda, Othaim and Lulu as well as hotels and restaurants including Burger King, McDonalds, Pizza Hut and Subway, as well as selling products directly to consumers online.


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