Olam Group Ltd. has picked banks to lead a planned Singapore listing of its agribusiness unit that could raise as much as US$1 billion ($1.34 billion), people familiar with the matter said.
The company selected Citigroup Inc., DBS Group Holdings Ltd., HSBC Holdings Plc and Morgan Stanley to arrange the planned initial public offering of Olam Agri Holdings Pte, according to the people. It’s aiming to complete the share sale later this year, the people said, asking not to be identified because the information is private.
The deliberations are ongoing and details of the listing could change, the people said. A representative for Olam said the company continues to focus on executing its reorganisation plan and will make a public announcement about any material developments. Spokespeople for the banks declined to comment.
Olam Group shares jumped as much as 3.4% on Friday, touching their highest intraday level in nearly six months, according to data compiled by Bloomberg. It has a market value of about US$4.3 billion.
The group said in December it completed the sale of a 35% stake in Olam Agri to state-owned Saudi Agricultural & Livestock Investment Co., a subsidiary of the oil-rich country’s Public Investment Fund. The deal valued the business at about US$3.5 billion.
Olam Agri sells grains and seeds and makes everything from edible oils to pasta, according to its website. It has over 9,000 employees and operations in more than 30 countries. The business is one of Olam Group’s main operating units, formed in a reorganization announced in early 2020. The group delayed a planned London IPO last year for another unit, Olam Food Ingredients, citing the war in Ukraine.
