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Olam Group’s shares sank more than 7% after the agricultural commodities trader said the listing of its unit in Saudi Arabia won’t be completed in the first half of the year as planned. The company hasn’t received all the regulatory approvals needed for its concurrent dual listing of Olam Agri in Saudi Arabia and Singapore, Olam said in a statement.
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It will continue to pursue the initial public offering of Olam Agri in the next practical window, it said. Olam’s shares dropped as much as 7.5% in Singapore to S$1.35, the biggest loss since March 2022. The stock pared some of those losses but is still set for the lowest close since December.
Why it matters
The IPO is set to be the second biggest in Saudi Arabia this year, after generic drugmaker Jamjoom Pharmaceuticals Factory Co.’s $336 million offering. That deal also priced at the top of the range last week and got institutional investor orders for 67 times the shares on offer. Saudi IPOs are returning to life after their slowest start since 2014 amid concerns over falling oil prices and a global economic slowdown.
