Baladna Food Industries (BFI), the largest dairy producer in Qatar which went public on October 27, announced yesterday that the Strategic Shares of its Initial Public offering (IPO), comprising 437.2 million of the Offer Shares, equivalent to 23 percent of the entire share capital of the Company, have been allocated to its strategic investors.
The company said a total of 190,100,000 shares (10 percentage shareholding) have been allocated to General Retirement and Social Insurance Authority (GRSIA). While 95,050,000 shares (5 percentage) was allocated to Hassad Food Company (Private), a total of 76,040,000 or 4 percentage has been allocated to Al Meera Consumer Goods. Mwani Qatar and Widam Food Company were allocated 38,020,000 shares each (2 percent).
These commitments have been made by leading Qatari institutions, some of which are public entities, reflecting significant confidence in the Company and its importance to Qatar’s economy and food security.
The Strategic Investors represent the length of the food security value chain, from international investments to ports and logistics, the import and processing of meats, and finally supermarket stores.
Among these Strategic Investors, representatives from Hassad Food and GRSIA will join the board of directors of Baladna, following their appointments at the Constitutive General Assembly on 26 November 2019.
Dr Kamel Abdallah, Ph.D, Group CEO of Baladna, commented: “This IPO is an opportunity for Qataris to share in Baladna’s success and future growth as Qatar’s largest dairy and beverage producer.
We are pleased to see such a high calibre group of investors participate in Baladna’s IPO, with many bringing their valuable experience in the sector or via their instrumental roles in the Qatari food security program to Baladna, such as Mr Mohamed Badr Al Sada, who will join the Baladna board as Vice Chairman.”
“The proceeds will be used to strengthen Baladna’s balance sheet and help ensure its long-term success as it continues to expand its offering, fill proven gaps in the fresh dairy market and contribute to Qatar’s self-sufficiency as part of 2030 Vision and the National Food Security Program,” Dr Kamal said.
The Offer Shares subscribed for by the Strategic Shareholders will have the same rights and obligations as the Offer Shares subscribed for by the Individual and Corporate Investors.
The locally-owned dairy and beverage company Baladna is aiming at raising as much as QR1.43bn by offering 75 percent equity stake to public through the IPO which hit the market last week. The IPO will run until November 7, 2019.
